The CPI for January at 5.69 per cent was the highest figure recorded since August of 2014. Similarly, food inflation at 6.85 per cent in January was also the highest in 17 months. Despite these numbers, we are on track as far as meeting the inflation targets is concerned in near term 3. There are, however, risks to meeting our projections.
Besides structural factors like persistent high level of food prices due to rising income level not being matched by increase in productivity, production and distribution of food items, in particular protein/pulses food, the implementation of the seventh Central Pay Commission award, monsoon and the path of commodity prices including crude prices have to be factored in the near term inflation outlook. 17.