Retail inflation cools to 6.58% in Feb

Retail inflation dropped for the first time after six months in February, easing to 6.58 per cent as prices of vegetables and other kitchen items cooled, government data showed.

The Consumer Price Index (CPI) based retail inflation, however, still continues to rule above the comfort level of the Reserve Bank of India.

The retail inflation was 7.59 per cent in January this year and 2.57 per cent in February 2019.

Inflation was 10.2 per cent in the meat and fish segment in February, compared to 10.5 per cent in the previous month.

The CPI-based inflation has been on the rise since August 2019, and it is for the first time it has moved southward since then.

Data showed inflation in vegetable prices cooled off significantly to 31.61 per cent from a high of 50.19 per cent in January. The rate of price rise was also slower in case of protein-rich items pulses and eggs.

The inflation in the food basket was 10.81 per cent in February 2020, lower from 13.63 per cent in the previous month, as per the CPI data released by the National Statistical Office (NSO).

(with news agency inputs)