Press Trust of India
New Delhi, Feb 12: Rising for the sixth straight month, retail inflation touched a 16-month high of 5.69 per cent in January, mainly due to costlier food prices. Retail inflation, as measured by the Consumer Price Index (CPI), stood at 5.61 per cent in December 2015 and 5.19 per cent in January 2015. The pace of retail price rise in January 2016 is the highest since 6.46 per cent in September 2014. Food inflation, as measured by Consumer Food Price Index (CFPI), quickened to 6.85 per cent in the first month of 2016, government data showed Friday.
Retail prices of ‘cereals and products’ inched up by 2.19 per cent in January, from 2.12 per cent in December 2015. The rate of price rise in meat and fish category was 8.23 per cent during the month, while it was 3.96 per cent for eggs. The substantial price rise in these items is mainly attributed to their higher consumption during winter. However, prices of seasonal fruits witnessed deflation during the month, with a fall of (-)0.24 per cent. But vegetable prices moved up fairly at 6.39 per cent.
Prices of ‘pulses and its products’ continued to stay elevated, as inflation was as high as 42.32 per cent, according to the data released by the Central Statistics Office under the Ministry of Statistics and Programme Implementation. The inflation rates, based on CPI for rural areas, stood at 6.48 per cent in January, while that for urban areas was 4.81 per cent. The price data are collected by the government from selected towns by the Field Operations Division of National Sample Survey Organisation (NSSO) and from selected villages by the Department of Posts. “On the prices front, situation has marginally deteriorated as CPI for January 2016 came in at 5.7 per cent as compared to 5.6 per cent in December 2015. Like earlier months, the key driver of CPI inflation once again had been food inflation.