New Delhi7 minutes agoAuthor: Shiva Rajaura
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Retail inflation was 4.31% in January.
There are signs of low inflation in the country. Retail inflation in February may be lower than in January. It can remain 4% or even below due to the decrease in the prices of all categories of goods, especially food items, which is within the Target of the Reserve Bank.
RBI’s monetary policy committee may once again reduce the policy interest rate i.e. repo rate in April. Retail inflation was 4.31% in January this year. The Ministry of Statistics will release the February data on Wednesday.
The Reserve Bank has estimated the retail inflation to be 4.8% in the financial year 2024-25 ending March 31. The central bank also estimates that inflation rate will be 4.4% in the January-March quarter. The February figures may be less than this. At least four indigenous and foreign agencies have made a similar estimate.
3 agencies of India and abroad estimate
- Japan’s brokerage firm Nomura Asia Vegetable prices are decreasing in India. Due to this, retail inflation rates are expected to be 4 per cent in February and 4.1 per cent in the January-March quarter.
The firm said-
Domestic demand in India is weakening. Meanwhile, inflation will be reduced due to increase in crop yield and the production cost of factories. Due to this, there is a possibility of compensation to an extent of loss due to weakness in the rupee.
- Chief Economist: Vegetable prices will remain low till June Madan Sabnavis, Chief Economist of Bank of Baroda, said that at present, the decrease in inflation will continue. Retail inflation may come down to 4.1 percent in February. Prices are decreasing in every field. The wholesale price of vegetables has also declined drastically. Most of the prices of tomatoes and potatoes are reduced. This situation is likely to remain until June. Its effect may appear on the entire food basket.
- India Ratings: Inflation may come at a low of 3.7%
Senior Economic Analyst Paras Jasarai in India Ratings said that the situation is such that retail inflation could come at 3.7% in February. If this happens, retail inflation in the country will be at the lowest level of 7 months.
They believe that…
The inflation rate of food items is likely to be reduced to 4%. Aditi Nair, Chief Economist, Ecra Rating, also estimates that retail inflation rate may be 4.1% in February.
How does it affect? Inflation is directly related to Purchasing Power. For example, if the inflation rate is 6%, the price of 100 rupees earned will be only 94 rupees. Therefore, in view of inflation, one should invest. Otherwise the value of your money will be reduced.
How does inflation grow? Increased inflation and the event depends on the demand and supply of the product. If people have more money, then they will buy more things. Buying more things will increase the demand for things and if there is no supply according to the demand, the price of these things will increase.
In this way, the market is in the grip of inflation. Simply put, excessive money in the market or shortage of things causes inflation. On the other hand, if the demand will be reduced and more supply will be reduced.
CPI determines inflation As a customer, you and we buy goods from the retail market. Consumer Price Index i.e. CPI does the work of showing changes in the prices associated with it. The CPI measures the same for goods and services that we pay for goods and services.
Crude oil, commodity prices, manufactured costs, also have many other things which have an important role in fixing retail inflation. There are about 300 items, based on the prices, the rate of retail inflation is fixed.
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Retail inflation came down to 4.31% in January: This 5-month low, food and drink prices decreased
Retail inflation came to a 5-month low of 4.31% in January due to food and drinking items cheap. Inflation was at 3.65% in August. Earlier, inflation was 5.22% in December. On 12 February, the government released retail inflation figures. About 50% contribution to inflation baskets is food and drink. …
(Tagstotranslate) Inflation Rate May Remain Below 4% in March 2025
