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Retail inflation based on the Consumer Price Index (CPI) cooled down slightly to 6.44 per cent in February 2023, as compared to 6.52 per cent in January, mainly on account of a slight easing in prices of food and fuel items. However, it is higher than 6.07 per cent inflation rate in February 2022. Also, the inflation for the month of February remained above the Reserve Bank of India’s (RBI’s) upper tolerance limit of 6 per cent for a second consecutive month. Except for November and December 2022, retail inflation has remained above the RBI’s upper tolerance level since January 2022.

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that Rural CPI (General) in February 2023 stood at 6.72 per cent as against 6.85 per cent in January. The Urban CPI (General) stood at 6.10 per cent in February as against 6.00 per cent in January. The index value for Rural, Urban and Combined CPI (General) stood at 177.9, 175.6 and 176.8 respectively, in February 2023.

The inflation rate for the food basket was 5.95 per cent in February, lower than 6 per cent in January. It was 5.85 per cent in February last year. As per the data, Vegetable prices remained in deflation territory, contracting 11.6 per cent, though it recorded a double-digit increase in spices (20.20 per cent) and cereals and products (16.73 per cent). A decline in inflation was also witnessed in the oils and fats segment. The price rise remained subdued in segments like meat and fish, eggs, pulses and products, sugar and confectionery and non-alcoholic beverages. On the other hand, the inflation in the fuel and light segment worked out to be 9.90 per cent in February.