JOIN USBacked by a sharp rise in prices of vegetables and cereals, India’s retail inflation inched up 10.79 per cent in January, putting pressure on the government to augment the supply-side measures.
This is the fourth consecutive month of rise in retail inflation. In December, the CPI printed 10.56 per cent and very close to 10 per cent in preceding two months, the official data showed.
The spike in inflation was largely due to higher vegetable prices, which surged close to 26 per cent last month, followed by close to 15 per cent jump in edible oil prices.
Prices of cereals and sugar too rose close to 13 per cent.
Prices of protein-based products surged nearly 15 per cent, raising concerns of policymakers already battling a high headline inflation, slowing growth and factory output.
Analysts said the upward movement in CPI could also be due to sharp moderation in rural wages with the spread of social sector programmes.
The CPI for rural population rose to 10.88 per cent during the month from 10.74 per cent in December. In urban areas, retail inflation rose slower at 10.79 per cent in January from 10.42 per cent in December.