Retail inflation in India increased to 3.21% in February as compared to January. This increase is mainly due to increase in prices of food and beverages, clothing, housing and utility services. This information was given in the preliminary data released by the Ministry of Statistics and Program Implementation on Thursday. The new Consumer Price Index data cannot be compared with the same period last year because the index basket was changed in January.
Retail inflation was recorded at 2.75% in January. This was the first figure of the new series, in which 2024 has been considered as the base year. According to the new series, food inflation in January was 2.13%. According to the old CPI series (in which 2012 was the base year), inflation was recorded at 1.33% in December and 0.71% in November.
These inflation figures have come at a time when concerns about disruption of global oil supply have increased due to the ongoing war between Iran, Israel and America. Economists say that if there is a long-term disruption in supply, imported inflation may increase in energy-dependent countries like India. Food inflation, which has the biggest weightage, increased to 3.47% in February, from 2.13% in January. Whereas in the category of electricity, gas and other fuels, inflation stood at 0.14%.
Inflation remained so high in villages and cities
Inflation in rural areas increased from 2.73% in January to 3.37% in February. Whereas urban inflation increased from 2.75% to 3.02%. However, it is still below the medium term target of 4% of the Reserve Bank. The prices of some kitchen items also continued to fall across India. The inflation rate of garlic was -31.09% in February, which was -53.03% in January. Onion prices also continued to fall and its inflation was -28.20%, which was -29.30% a month ago. Potato prices also remained low and its inflation was recorded at -18.46%, whereas in January it was -28.98%.
Inflation related to services and household expenditure
Price pressure was also seen in many services and household expenditure categories in the new CPI basket. Housing inflation was 2.12% in February, which was 2.05% in January. Inflation of clothes and shoes stood at 2.81% in February, whereas it was 2.98% in January. Inflation in restaurant and hotel services stood at 2.73% in February, which was 2.87% in January. Whereas the inflation of health services was 1.90%, which was 2.19% last month. Inflation in information and communication services stood at 0.25% in February, whereas it was 0.16% in January. Apart from this, the highest increase in prices of some metals and jewelery was recorded in February. According to the data, inflation of silver jewelery was 160.84%, which was 160.12% in January. At the same time, an increase of 48.16% was recorded in the prices of gold, diamond and platinum jewellery, which was 46.80% a month ago.