India’s February retail inflation rises to 3.65%

CPI (consumer price index) food inflation firmed up to 2.01 per cent in February from just 0.61 per cent in the previous month.

So-called “core” energy prices advanced by 0.2% on the month in February and 2.2% year-on-year (consensus: 0.2%, 2.2%), with the latter down from a 2.3% rise in the prior month.

Food inflation at the retail level was recorded at 2.01 per cent, while that in fruits was higher at 8.33 per cent, and fuel and light at 3.9 per cent in February. That development, coupled with steady job growth, is expected to lead the Fed to announce later Wednesday another rise in its benchmark interest rate.

A report released by the bureau on Tuesday said the figure represents 0.94 percent points lower from the 18.72 percent recorded in January.

Oil-dependent Nigeria plunged into recession in August previous year after months of being battered by low global crude prices and militant attacks on energy infrastructure in the oil-rich south.

The urban index also rose by 18.57 per cent (year-on-year) in February from 20.31 per cent in January while the rural index increased by 16.98 per cent in February from 17.34 per cent in January.

India’s WPI for February came in at 6.55% as compared to 5.25% of the previous month and negative 0.85% during in the same month of the previous year. Food prices rose 0.2 percent, the biggest advance since September 2015.

The CPI food inflation spiked up to 2.01% in February from 0.61% in January 2017, Government data showed.

Primary articles inflation in the WPI accelerated to 5% in February, from 1.3% in January.

Government’s economic recovery plans released recently, forecast inflation to be at 15.74 per cent by the end of 2017 and 12.42 per cent in 2018, which if achieved, could alleviate widespread frustration and the high cost of living. Similar are the trends in health and recreation services, where inflation levels have slumped to around 4% both three year lows.

However, the prices of milk and milk-based products surged by 4.22 per cent.

Commenting on the decline in February inflation rate, analysts at Financial Derivatives Company Limited, headed by Bismarck Rewane, projected further decline in the inflation rate subject to the Central Bank of Nigeria sustaining its intervention in the foreign exchange market.