Retail Inflation Steadies at 5.09% in February 2024

Retail inflation in February 2024 saw a decline to a four-month low of 5.09 per cent, remaining well within the Reserve Bank of India’s comfort zone of 6 per cent for the sixth consecutive month. While the overall inflation figure remained relatively steady compared to January, certain items within the food basket experienced price increases.

Food Basket Inflation

• The inflation rate within the food basket saw a marginal uptick, rising to 8.66 per cent in February from 8.3 per cent in the previous month.
• Notably, prices of specific items such as vegetables, fruits, oils and fats, and pulses and products witnessed a slight decrease on a month-on-month basis.
• Conversely, the rate of price escalation was higher in segments including cereals and products, meat and fish, and milk and products.

Weightage of Food Basket

• The food basket holds significant importance, accounting for nearly 50 per cent weightage in the Consumer Price Index (CPI). This underscores the substantial impact of food prices on overall inflation trends.