New Delhi: Retail inflation declined marginally to 2.05 percent in January over the previous month on a continued decline in food prices, including vegetables and eggs, said government data on Tuesday.
Retail inflation based on the Consumer Price Index (CPI) for December 2018 has also been revised downward to 2.11 percent from the earlier estimate of 2.19 percent. The inflation was 5.07 percent in January 2018.
The data released by the Central Statistics Office further said the inflation in the ‘fuel and light’ category also fell to 2.2 percent in January this year from 4.54 percent in December 2018. The Reserve Bank of India, which reduced the key lending rate by 0.25 percent last week, mainly factors in CPI-based inflation while arriving at its bi-monthly monetary policy.
The central bank has revised downwards the retail inflation forecast to 2.8 percent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.