CPI Inflation March 2023 The Reserve Bank has not increased the repo rate this time. However, the rate of inflation still remains above 5.50 percent. Explain that the government has entrusted the responsibility of inflation control to the central bank.
CPI Inflation March 2023: The effect of RBI’s efforts to reduce inflation is now visible. There has been a decrease in the rate of inflation in March. Inflation has come down to 5.66 in March. The main reason for this is the reduction in the prices of food and fuel.
Let us tell you that after strengthening in January, there was a slight decline in the retail inflation data in February. Inflation in February was 6.44 percent. The rate of inflation based on CPI was 6.52 percent in January and 6.07 percent in February 2022. The inflation rate for the food basket was recorded at 5.95 per cent in February.
Inflation within the tolerance band
Retail inflation was to remain above the RBI’s upper tolerance level of 6 per cent from January 2022 onwards, except for November and December 2022. Once again there has been a softening in it.
Government data released on Wednesday showed retail inflation eased to a 15-month low of 5.66 per cent in March, mainly due to fall in food prices. The inflation figure for March is well within the RBI’s comfort zone as it is below 6 per cent.
Retail inflation based on the Consumer Price Index (CPI) stood at 6.44 per cent in February 2023 and 6.95 per cent in the year-ago period.
Where how much inflation was recorded
According to the National Statistical Office, inflation in the food basket stood at 4.79 per cent in March. It was 5.95 per cent in February and 7.68 per cent in the year-ago period. Retail inflation to rise from 5.7 per cent in December 2022 to 6.4 per cent in February 2023 due to higher inflation in cereals, milk and fruits and a slower decline in vegetable prices.
The Reserve Bank of India forecast CPI inflation for FY2023-24 at 5.2 per cent, 5.1 per cent in Q1, 5.4 per cent in Q2, 5.4 per cent in Q3 and 5.2 per cent in Q4, with risks evenly balanced.
