As per the latest data, food inflation, which accounts for close to half of the overall CPI fell to 8.3 per cent in January.
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Mumbai: In a matter of relief for the consumers of India, retail inflation slowed to 5.1 per cent in January this year from 5.69 per cent in December last year, i.e, 2023. The decrease in retail inflation has brought some relief to household budgets, according to official figures released on Monday.
Food inflation, which accounts for close to half of the overall consumer price index (CPI), fell to 8.3 per cent in January from 9.05 per cent in December. However, the prices of vegetables, pulses and spices registered a double-digit growth during the month, though there was some consolation as cooking oil prices continued to decline during the month.
The data show that vegetable prices shot up by as much as 27.03 per cent, which was lower than 31.34 per cent during December. There was no relief as far as pulses are concerned, as they turned costlier by 19.54 per cent, while spices were dearer by 16.36 per cent. The prices of cereals went up by 7.83 per cent in January as against 9.53 per cent in December.
Consumer price inflation is now above the 4 per cent midpoint of the RBI’s 2-6 per cent target range and is the main reason why the RBI is not going for a cut in interest rates to spur economic growth. The central bank is keen to keep inflation under control to ensure stability and has held the repo rate steady at 6.5 per cent for six consecutive times in a row in its bimonthly monetary policy reviews.
RBI Supports Fintech Sector But Customer Interest Important Says
The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, said on Monday that while the central bank is supportive of the fintech sector, it is also committed to protecting the interests of customers as well as ensuring financial stability.
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On the action taken against Paytm Payments Bank, Das said while addressing the media after RBI’s board meeting, “When a decision is taken, it is taken after much consideration and deliberation. Decisions are not taken in a casual manner. They are taken in a serious manner.
“Let me be very clear: there is no review of the action taken against Paytm Payments Bank. The FAQ that will be coming soon will deal with customer interest issues.” Das said the RBI promotes and will continue to promote fintech, but customer interests and financial stability are of prime importance.
“There should not be any doubt about the RBI’s support for the fintech sector,” he said.
Das also said that India has played a pioneering role in promoting digital public infrastructure. Prime Minister Narendra Modi has now launched the linkage of UPI with the fast payments systems of Mauritius and Sri Lanka, the RBI Governor said.
Das said that Sri Lanka is the third SAARC country with which India has entered into such an arrangement regarding UPI, the others being Nepal and Bhutan. Mauritius is the first African country to agree to such an arrangement.
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“It is our endeavour to enter into collaborations with other countries on digital public infrastructure,” he said. Meanwhile, members of the RBI’s board congratulated Finance Minister Nirmala Sitharaman on presenting a responsible interim budget.
