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Inflation rate of February 2023: Today is recorded in Indian history forever. Till morning there was only one story behind it, but by evening another chapter was added to it. This chapter is about a ray of hope seen in the midst of the worldwide recession. This is because of the low inflation rate in India. In fact, according to government data released on Monday, retail inflation eased marginally to 6.44 per cent in February, mainly due to fall in food and fuel prices. The rate of inflation based on the Consumer Price Index (CPI) was 6.52 percent in January 2023 and 6.07 percent in February 2022. Inflation for food articles stood at 5.95 per cent in February, down from 6 per cent in January.
RBI is focusing on reducing inflation
Retail inflation has remained above RBI’s upper limit of 6 per cent since January 2022, except in November and December 2022. The Reserve Bank has projected retail inflation at 6.5 per cent for 2022-23, with 5.7 per cent in the January-December quarter. The central bank is mandated by the government to ensure that retail inflation remains at 4 percent with a margin of 2 percent on either side. To contain rising prices, the RBI has increased interest rates by 2.50 basis points since May last year. The latest rate hike of 25 basis points took the benchmark policy rate to 6.50 per cent in February.
Information given by RBI
RBI’s Monetary Policy Committee (MPC) member Ashima Goyal said on Sunday that inflation is expected to come down this year. A flexible inflation targeting regime as well as supply-side action have kept the rate of price rise low compared to other countries, he said. Goyal said that India has successfully faced the challenges in the last three years by showing great resilience. He said, the inflation rate is expected to come down throughout the year. The government’s supply-side action coupled with a flexible inflation targeting regime has kept India’s inflation rate low compared to other countries, he said. He was asked whether high inflation has become a normal situation in India. He said policy rates were cut drastically during the pandemic, so they had to be raised sharply after the revival. Goyal further added, but due to lack of external demand, there should not be much increase in the policy rates at present. Domestic demand should be allowed to compensate.
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