CPI Inflation declines to 5.18 per cent in February

The Consumer Price Index (CPI) based retail inflation dipped to 5.18 per cent in February 2016 as compared to 5.69 per cent in January 2016, snapping a consistent increase of six consecutive months. On a yearly basis, the CPI inflation rose from 5.37 per cent in February 2015 to 5.18 per cent in February 2016.

The food prices have a weight of 46 percent in CPI. In February 2016 the Consumer Food Price Index (CFPI) rose by 5.30 per cent as compared to an increase of 6.85 per cent in January contributing to the dip in CPI inflation. Within the food items, the inflation pertaining to vegetables plunged to 0.70 per cent; pulses and products to 38.30 per cent; oils and fats to 5.13 per cent; meat and fish to 7.27 per cent; milk and products to 3.66 per cent; and fruits to -0.72 per cent. The inflation was flat for non-alcoholic beverages at 4.24 per cent; and cereals and products at 2.18 per cent. On the other hand, inflation rose for egg to 6.19 per cent; and sugar and confectionery to 0.51 per cent in February 2016.

The inflation for clothing and footwear declined to 5.52 per cent in February 2016; while the CPI inflation of fuel and light also eased to 4.59 per cent in February 2016.

The inflation for housing increased to 5.33 per cent; while that for miscellaneous items moved up to 4.38 per cent in February 2016. Within the miscellaneous items, the inflation for transport and communication rose to 2.39 per cent; and personal care and effects to 4.77 per cent in February 2016.

The price of other constituents of CPI, Tobacco and intoxicants increased by 9.50 per cent Year on Year (Y-o-Y); clothing and footwear by 5.76 per cent. Housing by 4.95 per cent; fuel and light by 5.28 per cent. Miscellaneous by 3.78 per cent Y-o-Y.