India’s retail inflation may come down to 5 percent by March 2023. SBI Research has said this in its latest Ecowrap report.
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India’s retail inflation may come down to 5 percent by March 2023. SBI Research has said this in its latest Ecowrap report. According to the report, retail inflation based on Consumer Price Index is expected to remain below the RBI’s level of 6 per cent. For January-March 2023, the average retail inflation stood at 4.7 per cent.
Inflation will continue to fall
According to the latest data released by the Ministry of Statistics, retail inflation stood at 5.72 per cent during the month of December. There has been a slight decline in the latest figures released on Thursday. Compared to the previous month, retail inflation will continue to decline further.
Retail inflation has come down from 6.77 per cent in October to 5.88 per cent in November. Retail inflation in India has remained above 6 per cent for more than three quarters till October. This is higher than the level prescribed by RBI.
What will be the reason for the decrease in inflation?
State Bank of India’s Group Chief Economic Advisor Soumya Kanti Ghosh has said that CPI inflation has reached a 12-month low of 5.72 per cent in December 2022. He has said that this has happened mainly because of the huge fall in the prices of vegetables. Because there has been a big change in the sowing work of farmers, in which farmers have made efforts according to the forecast of better weather and technology.
Let us tell you that in the month of December, the retail inflation rate has been seen below 6 percent. This is the second consecutive month when inflation has been below 6 per cent and there has been a slight decline in comparison to November. According to the data, the country’s retail inflation rate has been seen at 5.72 percent, whereas in the month of November this figure was 5.88 percent. Now retail inflation in the country has come down to a year’s low.
Lower food prices, especially vegetables, have helped keep inflation within the tolerance level. Food inflation, which accounts for nearly 40 per cent of the inflation bucket, came down to 4.19 per cent in December, compared to 4.67 per cent in the previous month.
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