India's retail inflation rose to 6.01 per cent in January, crossing the upper limit of the Reserve Bank of India (RBI) tolerance band for the first time in seven months, the government data showed on Monday.
The headline inflation, as measured by the Consumer Price Index (CPI) rose to 6.01 per cent in January 2022 from 5.66 per cent in the previous month. December CPI inflation data has been revised upward 5.66 per cent from 5.59 per cent reported earlier.
Price rise in rural area was sharper than the urban areas. Rural inflation surged to 6.12 per cent in January 2022 from 5.36 per cent in the previous month, according to data released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
Urban CPI inflation rose marginally to 5.91 per cent in January from 5.90 per cent in the previous month.
The sharp increase in rural inflation is largely due to the base effect. Rural inflation stood at 3.23 per cent in January 2021. It almost doubled to 6.12 per cent in January 2022. However, urban inflation which was at an elevated level of 5.13 per cent in January 2021 rose at a slower pace at 5.91 per cent in January 2022.
The overall CPI-based inflation stood at 4.06 per cent in January 2021.
Talking to reporters earlier in the day, the Reserve Bank of India (RBI) Governor Shaktikanta Das said inflation crossing 6 per cent would not be a surprise or a matter of alarm.
"If you look at the momentum of inflation right from last October onward, it is on a downward slope. It's primarily the statistical reasons, the base effect, which has resulted in higher inflation," Das said at a press conference after the RBI board meet in the national capital.
According to data released by the Ministry of Commerce and Industry on Monday, India's wholesale inflation eased to 12.96 per cent in January from 13.56 per cent in the previous month.
The Wholesale Price Index (WPI) based inflation has declined consistently in recent months. It fell from 14.87 per cent in November 2021 to 13.56 per cent in December 2021 and further to 12.96 per cent in January 2022.
( With inputs from ANI )
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