Retail inflation slips 37-month low to 3.17% in January

New Delhi: Impacted by note ban, retail inflation fell to 37-month low of 3.17 percent in January mainly on account of declining prices of food items including vegetables and pulses. [caption id=“attachment_2955134” align=“alignleft” width=“380”]  AFP[/caption] Retail inflation, measured in terms of Consumer Price Index (CPI), was at 3.41 percent in December. Last month’s inflation, down from 5.69 percent in January 2016, was lowest in at least over three years. Inflation in vegetables continued in the negative zone at (-)15.62 percent as against (-)14.59 percent a month earlier, as per the data from the Ministry of Statistics and Programme Implementation. In pulses and products category also, the rate of price rise was negative at (-)6.62 percent. Inflation in fruits was higher at 5.81 percent, fuel and light at 3.42 percent. The rate of price rise in meat and fish was 2.98 percent. Government’s sudden announcement on November 8, 2016 to abolish old Rs 500 and Rs 1,000 notes, nearly 86 percent of the total cash in circulation, dented demand in the consumer segment. Overall, Consumer Food Price Index was down at 0.53 percent in January as against 1.37 percent in December. Rural retail inflation was at 3.36 percent in January compared with 3.83 percent preceding month. For urban sector, it was at stable at 2.90 percent.