1. Home
  2. Blog
  3. UPSC

Inflation at 5.1%

Why is it in the news?

  • India’s retail inflation remained steady at 5.09% in February, with expectations for it to stay within the 5.1%-5.2% range in March as well.

More about the news

  • Food prices experienced a resurgence, with consumer food price inflation (CFPI) rising from 8.3% in January to 8.66% in February, primarily driven by a sharp increase in vegetable prices, which rose at a seven-month high pace of 30.25%.
  • Inflation measured by CFPI accelerated for urban and rural residents, with urban inflation easing slightly from 4.9% to 4.8% in February, while rural inflation remained unchanged at 5.34%.
  • Persistently high food inflation may elevate average inflation for the last quarter above the 5% average projected by the Reserve Bank of India (RBI).
  • With high food inflation, hopes for interest rate cuts may diminish, especially as the RBI projects price rise to average 5% in the April to June quarter.
  • Core inflation, excluding food and energy costs, remained below 4% for the third consecutive month, suggesting stable underlying inflationary pressures.
  • Inflation varied across states, with four states experiencing inflation above the RBI’s upper tolerance threshold of 6%, while others recorded inflation above the national average of 5.1%.
  • Delhi and Madhya Pradesh recorded the lowest inflation rates, while Odisha had the highest inflation rate at 7.55%, indicating regional disparities in price dynamics.

Get free UPSC Updates straight to your inbox!

Discover more from AMIGOS IAS

Subscribe now to keep reading and get access to the full archive.

Continue reading