Retail Inflation in India: There was a decline in retail inflation in December. During December 2022, the retail inflation rate has come down to a one-year low of 5.72. At the same time, another relief news has come to the fore. The report of SBI Research states that Retail Inflation in India will come down to 5 percent by March 2023.
SBI Research has said in its new report that India’s retail inflation rate based on Consumer Price Index (CPI) is expected to remain below RBI’s 6 per cent and will come down to 5 per cent by March 2023. The data of retail inflation was shared by the Ministry of Statistics on Thursday. The retail inflation rate in the month of December has been 5.72 percent.
Retail inflation at one year low
At the same time, the retail inflation rate has been 5.88 percent in November and 6.77 percent in October, while the retail inflation rate in India was more than 6 percent for three quarters till October. CPI inflation has come down to a 12-month low of 5.72 per cent in December 2022. Retail inflation has come down mainly due to fall in the prices of vegetables and some items of daily use.
Less expected to increase repo rate
Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India has written the SBI Research report. It has been said that there is little hope of further increase in the repo rate against the changing scenario. As of now, the effect of the increased repo rate has not been fully felt. Explain that the repo rate was increased by 225 basis points from May 2022 against rising inflation from RBI. The RBI repo rate is currently at 6.25 percent.
When was the repo rate last increased?
The central bank last increased the repo rate on 7 December. The policy repo rate was increased by 35 basis points. Last year, this hike was done by the Monetary Policy Committee (MPC) of RBI to reduce inflation. The next three-day monetary policy meeting of RBI is to be held on February 6-8.
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