CPI Inflation rises to 2.57% in Feb 2019 - Know what led to this

The Consumer Price Index (CPI) or retail inflation for the month of February 2019, came in at 2.57% higher from 1.97% posted in January 2019, but lower compared to 4.44% in the same month of previous year. Such ra ise in inflation numbers can be attributed to food inflation which has posted da ifferent picture. Notably, there was barely any change in CPI for this month, as it stood at 139.9, higher by 0.21% as against 139.6 in January month. 

On the other hand, the Consumer Food Price Index (CFPI) inflation came in at deflation narrowed to -0.66% in February 2019, compared to -2.24% from previous month. In February 2018, food inflation was at 3.26%.

The CPI (Rural, Urban, Combined) on Base 2012=100 is being released for the month of February 2019. In addition to this, Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined are also being released for February 2019. 

source: tradingeconomics.com
In February month, food and beverages group were at -0.07%, while pan, tobacco and intoxicants at 5.49%, clothing and footwear at 2.73%, housing at 5.10% and fuel light at 1.24%. 

Meanwhile, miscellaneous indicator including education, household goods and services, transport and communication, recreation and amusement and personal care posted a inflation rate of 6.02%. 

State-wise, inflation rate was highest at 5.53% in Kerala, 5.31% in Assam, 4,96% in Karnataka, 3.79% in Jammu & Kashmir and 3.17% in Tamil Nadu. 

In February 2019 policy, RBI has lowered its inflation target already to 2.8 per cent in Q4:2018-19, 3.2-3.4 per cent in H1:2019-20 and 3.9 per cent in Q3:2019-20, with risks broadly balanced around the central trajectory.

Now that inflation has risen, it would be keenly watched to what will be RBI's stance in upcoming policy, especially in case of repo rate cut.