In the last month, people have got some relief from inflation. Wholesale inflation declined to 2.26% in February, compared to 3.1% in January. The main reason for the decrease in inflation is the decrease in the rate of pulses and vegetables. However, there has been a slight rise in the rate of inflation of eggs and meat and fish in February. Let us tell you that in January 2020, wholesale inflation was 3.1 percent, in December 2019 at 2.59 percent. According to economic experts, wholesale inflation has been steadily increasing in the last few months due to the rise in the prices of vegetables.
The inflation rate of eggs and meat-fish has increased from 6.73 per cent to 6.88 per cent, while the inflation rate of potato has also been seen and the effect of reduction in its prices in vegetables is seen as a reduction in food inflation.
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Retail inflation eased to 6.58 percent in February due to softening of food prices. The government released data in this regard on Thursday (March 12). Consumer Price Index (CPI) -based inflation was 7.59 percent in January 2020, compared to 2.57 percent in February 2019.
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According to data from the National Statistics Office, food inflation declined to 10.81 percent in February 2020, from 13.63 percent in January. Retail inflation is an important factor in deciding policy rates in the Reserve Bank's bi-monthly monetary review. The government has given the Reserve Bank a target to keep retail inflation below four percent.
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