The Government released its first nation-wide Consumer Price Index (CPI) on Tuesday as per which high prices of manufactured goods and fuel kept the retail inflation at an elevated level of 7.65 per cent in January.

The CPI, measured by changes in retail prices, was higher than the rate of price rise in wholesale market during the month. Inflation based on the Wholesale Price Index (WPI) was 6.55 per cent in January.

This is the first time the government came out with nation-wide inflation data based on retail prices.

According to experts, the data which presents a more realistic picture of the price situation, will eventually be used as benchmark for policy action by the Reserve Bank.

As per the data released by the Central Statistical Organisation (CSO), overall retail inflation in rural and urban areas stood at 7.38 per cent and 8.25 per cent, respectively, in January.

While ‘food and beverages’ reported a moderate rate of price rise at 4.11 per cent year-on-year in January, the inflation numbers for ‘fuel and light’ and ‘clothing, bedding and footwear’ categories were in double-digits.

Fuel and light inflation stood at 13.13 per cent, while the rate of price rise of clothing, bedding and footwear was 14.25 per cent on country-wide basis.

Among food items, vegetables became cheaper by over 24 per cent. However, other items were expensive with protein- based products becoming dearer by over 10 per cent.

“The combined CPI data shows that inflation is uncomfortably high even as inflationary expectations remain elevated,” ICRA Economist Aditi Nayar said.

She said the RBI is likely to keep its key policy rates unchanged at its next mid-quarterly review on March 15.