The National Statistical Office (NSO) has released data over Consumer Price Index (CPI), which reveals that the rising price of kitchen items has pushed the retail inflation to a six-month high at 5.59% in December, 2021. This is close to the Reserve Bank’s upper tolerance limit of 6 per cent.
As per the data, food inflation was at 4.05 per cent in December 2021 compared to 1.87 per cent in November 2021. While the Consumer Price Index (CPI) based retail inflation was 4.91 per cent in November 2021 and 4.59 per cent in December 2020.
In the food basket, inflation recorded on higher side is in ‘cereals and products’, eggs, ‘milk and products’, spices, and ‘prepared meals, snacks and sweets’ segments in December over the November. Whereas, the rate of price rise recorded slower in case of vegetables, fruits, and ‘oil and fats’. In the ‘fuel and light’ category, the inflation recorded at 10.95% during the month.
However, in July, 2021 the rate of inflation was also 5.59% but it slowed in next two months and started moving up from October, 2021. Earlier in May 2021, RBI has been tasked by the government to keep the inflation at 4 per cent with margin of 2 per cent on either side (that is, in the range of 2-6%).