CPI eases marginally to 5.72% in Dec 2022, within RBI's comfort zone

India's Consumer Price Index (CPI)-based inflation in December eased marginally to 5.7 per cent, staying within the Reserve Bank of India's tolerance range of 2-6 per cent. 

In November, CPI, also called retail inflation, was at eleven-month low of 5.88 per cent. For October it was 6.7 per cent and 7.14 per cent in September. In December 2021, retail inflation was 5.66 per cent.

Lower food prices, particularly the fall in vegetable prices, helped keep inflation within the tolerance range.

The data released by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MOSPI) on Thursday showed Food inflation, which accounts for about 40 per cent of the inflation basket, came in at 4.19 per cent in December as against 4.67 per cent in the preceding month.

At 10.97 per cent YoY, the inflation was the highest in fuel and light category. It was followed by 9.58 per cent in clothing and footwear category. In food and beverages category, the inflation was 4.58 per cent. 

The rural inflation was higher at 6.05 per cent as compared to 5.39 per cent in urban areas. In December 2021, the inflation was higher in urban areas.

According to the data, the CPI has remain above the medium-term target of 4 per cent for over three years. 

Recently, RBI Governor Shaktikanta Das said the bank would continue its fight against inflation despite the worst being "behind us", suggesting the central bank was likely to remain hawkish in the near term.