Retail inflation increased to a six-month high of 5.59 percent due to high food pricesRetail inflation in December 2021 increased to a six-month high of 5.59 percent from 4.91 percent in November 2021, generally due to sharp rise in food costs as food inflation for the period under review also rose steeply to 4.05 percent against 1.87 percent in November 2021.
The rise in rather sharp when compared to December 2020 also, as during the year ago duration, retail inflation was at 4.59 per cent while food inflation was at 3.41 per cent.According to information launched by the ministry of data and program implementation, rates of cereals, egg, milk items and ready meals went up during December 2021.
Apart from these products, prices of clothing and shoes, education, health in addition to recreation activities and transportation too witnessed an increase in December 2021 compared to November 2021.
The rise in retail inflation, which is determined on the basis of consumer cost index or CPI has taken it to closer to Reserve Bank of India's (RBI) upper tolerance limit.RBI, which primarily factors in retail inflation while reaching its bi-monthly financial policy, anticipates the inflation print to be somewhat higher over the rest of the year as base impacts turn adverse.According to the RBI, it is anticipated that headline inflation will peak in the fourth quarter of the current fiscal and soften thereafter.