Retail inflation has increased to 3.21% in February. Earlier in January it was 2.74%. These figures have been released today on March 12. This increase in inflation has happened at a time when there is a war going on between Israel, America and Iran. Experts believe that if this war continues for a long time, the price of crude oil may reach $ 150 per barrel. Due to this, petrol and diesel may become expensive, which will increase the cost of freight transportation and the prices of every essential item including fruits and vegetables will increase. Retail inflation rate in the financial year 2025-2026 Inflation increased due to rising prices of food items Garlic became cheaper by 31% and onion by 28% in February Inflation rate of silver jewelery is more than 160% Inflation is being measured in a new way, OTT is included This is the second data released under the new inflation formula (2024 base year). The government has also made changes in the basket of measuring inflation. The weight of food items has been reduced from 45.9% to 36.75%, while the weight of housing and electricity-gas has been increased. RBI’s estimate: Inflation may cross 4%. The Reserve Bank has estimated the average inflation rate to be 2.1% for the financial year 2026. However, it may increase to 4% in the April-June (Q1 FY27) quarter and 4.2% in the next quarter. At present, inflation is within the target set by RBI (4%), due to which the market is hopeful that there will be no major change in the policy rates immediately. How does inflation increase and decrease? The rise and fall of inflation depends on the demand and supply of the product. If people have more money they will buy more things. This will increase the demand for things and if there is no supply, their prices will increase. Whereas if demand is less and supply is more then inflation will be less.
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Retail inflation increased to 3.21% in February: Effect of food items becoming expensive; This may increase further due to Israel-Iran war
