Retail inflation in India eased marginally last month but stayed above the Reserve Bank of India’s upper threshold for a second straight month, keeping the central bank on course for further policy tightening.
Inflation, as measured by Consumer Price Index, eased to 6.44% in February from 6.52% in January.
Rise in food prices, which account for nearly half of the CPI basket, moderated last month to 5.95% from 6% in January. However, the bulk of the slowdown probably came from easing international prices and the government’s efforts to provide additional supplies of wheat.
Minutes from the RBI’s latest meeting showed the central bank was concerned about persistently high core inflation, leaving the door open for more policy tightening. CPI core inflation in February was unchanged at 6.1%.