Retail inflation rose to 6.01% in January, just above RBI’s upper limit

India’s retail inflation, as measured by the consumer price index (CPI), accelerated to 6.01% in the month of January, breaching the Reserve Bank of India (RBI) tolerance band of 6%, albeit marginally. The surge in inflation print was driven by higher consumer goods and telecom prices along with a comparatively low rate a year ago.

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Inflation, as measured by the consumer price index (CPI) was 5.66% in the preceding month of December. The Central bank’s monetary policy has been given the mandate to maintain annual inflation at 4% until March 31, 2026, with an upper tolerance of 6% and a lower tolerance of 2%.

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