New Delhi, 14 July-2014, IANS: India's retail inflation based on Consumer Price Index (CPI) declined…
Mumbai(DNA-)Retail inflation in India was recorded at 5.37% in February as against 5.11% in January.
This is the third straight month that retail inflation has climbed up. In November last year, retail inflation was 4.38% in November and 5% in December.
Earlier this week, the IMF had said that inflation in India is likely to stay above 6%. The organisation had pointed out that Reserve Bank of India (RBI) will need to keep a tight monetary policy it it wants to meet its target of keeping inflation under 6% by January next year.
The number is all the more important as Reserve Bank of India’s (RBI) governor Raghuram Rajan has kept a target that consumer price index (CPI) or retail inflation must be contained under 6% by January next year.
IMF pointed out to some supply side contraints that will make RBI’s task a difficult one. India’s Finance Minister Arun Jaitley has been asking RBI to ease monetary policy in the wake of falling inflation.
This, however, is the third straight month of inflation inching up doesn’t bode well for India’s monetary policy.