Retail Inflation: Retail inflation for the month of February 2023 was 6.44%, broadly in line with expectations and somewhat less than the 6.52% recorded for the month of January 2023. To keep inflation within the target range set by the central bank, the Reserve Bank may yet decide to increase benchmark lending rates by 25 basis points in its bimonthly policy announcement next month.

To contain the rising prices, the RBI has hiked interest rates by 250 basis points since May last year. The latest rate hike of 25 basis points in February took the benchmark policy rate to 6.50 per cent. In an online session on ‘Growth resilience and sticky inflation’, DBS Group Research Executive Director & Senior Economist Radhika Rao said the RBI may hike interest rates by 25 basis points in April and maintain a hawkish bias as retail inflation is still high. Retail inflation in January spiked to 6.52 per cent against 5.72 per cent in December last year.