Retail Inflation For Feb 2023 At 6.44%, Largely On Expected Lines

Retail inflation for the month of Feb 2023 came in at 6.44%, largely on expected lines and marginally lower than 6.52% seen for the month of Jan, 2023.

This may still prompt the Reserve Bank to hike benchmark lending rates by 25 basis points in its bi-monthly policy next month to bring down inflation within the central bank's comfort zone.

To contain the rising prices, the RBI has hiked interest rates by 250 basis points since May last year. The latest rate hike of 25 basis points in February took the benchmark policy rate to 6.50 per cent. In an online session on 'Growth resilience and sticky inflation', DBS Group Research Executive Director & Senior Economist Radhika Rao said the RBI may hike interest rates by 25 basis points in April and maintain a hawkish bias as retail inflation is still high. Retail inflation in January spiked to 6.52 per cent against 5.72 per cent in December last year.