Retail inflation edged up for the 6th straight month, touching a 16-month high of 5.69 per cent in January, mainly due to costlier food prices. Retail inflation, as measured by the Consumer Price Index (CPI), stood at 5.61 per cent in December 2015 and 5.19 per cent in January 2015.

The rate of price rise in meat and fish category was 8.23 per cent during the month, while it was 3.96 per cent for eggs. The substantial price rise in these items is mainly attributed to their higher consumption during winter. However, prices of seasonal fruits witnessed deflation during the month, with a fall of (-)0.24 per cent.

But vegetable prices moved up fairly at 6.39 per cent. Prices of ‘pulses and its products' continued to stay elevated, as inflation was as high as 42.32 per cent, according to the data released by the Central Statistics Office under the Ministry of Statistics and Programme Implementation. The inflation rates, based on CPI for rural areas, stood at 6.48 per cent in January, while that for

The rise in inflation along now makes the job of the Reserve Bank of India more complicated in terms of dropping interest rates. At a time when the economy is not showing any growth traction the RBI can cut interest rate to propel growth. However, the rise in retail inflation may tie the hands of the RBI when it comes to cutting interest rates.

With inputs from PTI