E-Paper
Retail inflation eases to three-month low in October
Consumer inflation in October slowed to a three-month low of 6.7% on-year due to moderating food prices, compared to a 7.4% rise in the previous month
India’s wholesale and retail inflation indices eased sharply in October, a relief for households experiencing spiraling prices, on the back of a broad-based decline across commodities, data released by the government on Monday showed.
Consumer inflation in October slowed to a three-month low of 6.7% on-year due to moderating food prices, compared to a 7.4% rise in the previous month, according to data released by the ministry of statistics and programme implementation.
Wholesale inflation in October fell to its lowest level since March 2021 at 8.3%, against 10.7% in September, figures released separately by the government showed.
Retail inflation, however, remained above the Reserve Bank of India’s (RBI) so-called acceptable limit of 6% (+/-2%) for the tenth straight month.
Retail food inflation for October stood at 7.01% compared to 8.6% in September. Cereal prices rose 12.08% annually in October, compared to 11.5% in the previous month, while inflation in meat and fish stood at 3.08%, compared to 2.55% in September.
Retail milk prices stood at 7.69%, compared to a 7.13% rise in the previous month. Inflation in oils and fats shrunk -2.15%, against 0.37% in September. Vegetable prices rose 7.77% over a year ago, compared to 18.05% in September, while pulses eased to 2.78, compared to 3.05% in September.
Consumer inflation in October will likely be under 7% and India will remain the fastest growing economy in the world despite back-to-back geopolitical shocks, RBI governor Shaktikanta Das had said at the 20th Hindustan Times Leadership Summit on Saturday.
Still, consumer inflation breaching the 6% limit for three consecutive quarters is treated as a failure of monetary policy and, as required by the law, RBI has written a letter to the Union government explaining the reasons and steps it proposes to take.
