Inflation eases to 4.06% in January

Retail inflation eased to 4.06 per cent in January, mainly on account of a decline in vegetable prices, as per government data released on Friday.

The inflation based on Consumer Price Index (CPI) was 4.59 per cent in December 2020.

The rate of price rise in the food basket was 1.89 per cent in January, significantly down from 3.41 per cent in December, revealed the data released by the National Statistical Office (NSO).

The Reserve Bank, which mainly factors in the retail inflation while arriving at its monetary policy, has been asked to keep CPI inflation at 4 per cent (+,- 2 per cent).