New Delhi, March 12 (IANS). The Consumer Price Index (CPI) -based inflation has stood at a seven -month low of 3.61 percent in February, which is 0.65 percent less than the January figure. This is because of the decrease in the price of food products.
This is the lowest level of retail inflation in the country after July 2024.
The official statement said that the food inflation rate in February has come to the lowest level after May 2023 and has seen a decrease of 2.22 percent as compared to January.
The decline in the main inflation rate and the fall in food inflation in February is the decrease in prices of vegetables, bases, meats and fish, pulses and milk products.
The products which have the lowest inflation rate in February. These included ginger (-35.81 percent), cumin (-28.77 percent), tomatoes (-28.51 percent), cauliflower (-21.19 percent) and garbage (-20.32 percent).
There has been a decrease in fuel price this month and it has been 1.33 percent in (-) in February.
The central bank has enough space to cut interest rates to increase the economic growth rate and generate more jobs due to retail inflation falling below 4 percent.
Last month, RBI Governor Sanjay Malhotra had reduced the repo rate by 25 to 6.5 percent to 6.25 percent. It was also said that the inflation rate is expected to come below 4 percent according to the RBI target.
The MPC, which took place in the month of February, also decided to continue its neutral stance in monetary policy and focused on reducing inflation, supporting development. Malhotra said that this will give flexibility to react to the massive economic environment.
-IANS
ABS/