Retail inflation falls to 5-month low of 4.87% in Oct


New Delhi, Nov 13 (IANS): India's retail inflation eased to a 5-month low of 4.87 per cent in October bringing much-needed relief to consumers, according to figures released by the National Statistics Office on Monday.

Sequentially, too, the inflation rate is lower than the corresponding figure of 5.02 per cent recorded in September.

There was a decline in fuel prices compared to the previous year as the government has reduced LPG prices in the run-up to key assembly elections in states which will be followed by the Lok Sabha polls in the first half of next year.

Food inflation, which accounts for close to half of the overall consumer price index (CPI), stood at 6.71 per cent in October compared to 6.56 per cent in September.

The price of edible oils declined by 13.69 per cent and vegetable prices remained in check bringing relief to consumers.

However, pulses continue to remain an area of concern as prices went up by 18.79 per cent during the month and spices turned costlier by a whopping 22.76 per cent.

Cereals including wheat and rice also recorded a double digit rise of 10.69 per cent during the month.

The consumer price inflation is now closer to the 4 per cent midpoint of the RBI's 2-6 per cent target range and will enable the central bank to keep interest rates on hold going ahead even as there is a downside risk due to the uncertainty in global crude oil prices which could push up inflation.

The decline in the inflation rate is in line with the expectation of the RBI, which had kept its key interest rate unchanged to push up the country's economic growth rate.

However, according to economists, there is still a need to be cautious as the effects of the erratic monsoon this year still has to play out which could impact food prices and geopolitical tensions such as the Israel-Hamas conflict may roil the oil markets.

 

  

Top Stories


Leave a Comment

Title: Retail inflation falls to 5-month low of 4.87% in Oct



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.