CPI inflation may ease to 5% in Feb

INDIA'S RETAIL INFLATION, based on the Consumer Price Index (CPI), is likely to ease to a four-month low of 5% in February from 5.1% in January, primarily due to the statistical effect of a high base and declining vegetable prices, suggests a median poll of 17 economists. In February 2023, CPI inflation stood at 6.44%.

- PRIYANSH VERMA

At this projected rate, the overall index is expected to have risen by a mere 0.1% sequentially, primarily driven by a month-on-month increase in prices of some key food and non-food items during February. The National Statistical Office (NSO) will release the February CPI data on Tuesday.

According to the Centre for Monitoring Indian Economy (CMIE), food inflation likely ebbed to 7.9% in February from 8.3% the previous month, mainly attributed to a decrease in the inflation rates of milk, spices, fruits, vegetables, and cereals. As per the data sourced the department of consumer affairs, onion prices fell by 14% month-on-month, potato prices declined by 3%, and tomato prices eased by 0.3% in February.