Consumer Price Inflation surges 6.07% in February; rises to 8-month high

Inflation based on Consumer Price Index (CPI) surged to 6.07 per cent in February this year. As per the data released by the Ministry of Statistics and Programme Implementation on Monday, this is the second consecutive time that the CPI data has come over the Reserve Bank of India's (RBI) upper margin of six per cent.

CPI inflation rises to an eight-month high. The annual inflation rate in India increased to a 7-month high of 6.01 per cent in January of 2022 from an upwardly revised 5.66 per cent in December 2021.

The government has mandated the central bank to maintain retail inflation at four per cent with a margin of two per cent on either side for five years ending March 2026.

Wholesale inflation rose to 13.11 per cent in February as compared to the corresponding month of the previous year. According to the Ministry of Commerce and Industry data released today, inflation based on the Wholesale Price Index (WPI) witnessed a spike mainly due to a rise in prices of crude petroleum & natural gas, mineral oils, metals, chemicals and food articles.

WPI inflation logged a double-digit rise for the 11th consecutive month in February this year. It was 12.96 per cent in January this year while it was 4.83 per cent in February 2021.

While the Reserve Bank of India considers Consumer Price Index (CPI) based inflation for its key policies, however, high WPI inflation is seen as a precursor to higher consumer prices as producers pass on rising costs to their customers.