Retail inflation has accelerated to 6.07% in February 2022, crossing the RBI’s comfort level (6%) for the second consecutive month. Wholesale inflation remained in double digits for the eleventh consecutive month. Data show that wholesale inflation increased in February due to the high prices of certain vegetables, diesel, petrol, crude oil, air turbine fuel, chemicals (caustic soda, ammonia), raw silk, raw cotton, and rose (flower). The surge in retail inflation is primarily attributed to the increased costs of certain vegetables, mustard oil, vanaspati, airfare, chicken, telephone charges, petrol, kerosene, and LPG.
Above tolerance level
The chart shows wholesale and retail inflation between January 2019 and February 2022. In February 2022, retail inflation accelerated to an eight-month high of 6.07% on the back of high food and fuel inflation. Wholesale inflation increased slightly to 13.11%, and it remained in double digits for the eleventh consecutive month. Wholesale inflation has remained high primarily due to imported commodities such as crude oil.
