While core CPI (ex food, fuel) declined from 6% in January to 5.8% yoy, an analysis by Nomura shows that basic commodity CPI inflation in February, on a three-month moving average, was in February was higher (by 6.5%) than in January. 6.4%.

Rural retail inflation rose to 6.4% in February from 5.8% in December. In comparison, the urban CPI fell from 5.9% to 5.8%.

While core CPI (ex food, fuel) declined from 6% in January to 5.8% yoy, an analysis by Nomura shows that basic commodity CPI inflation in February, on a three-month moving average, was in February was higher (by 6.5%) than in January. 6.4% and inflation for core services (ex-housing) rose to 5.6% from 5.4%, indicating input costs are being passed on.

The CPI is likely to be ~6-6.2% in March as retail fuel prices are likely to rise.


This post Inflation squeezes Bharat: Inflation in rural shops rises to 6.4% in February was original published at “https://www.financialexpress.com/opinion/inflation-pinches-bharat-rural-retail-inflation-rises-to-6-4-in-february/2462108/”

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