Retail inflation surges to 14-month high of 6.21% in October
The surge was primarily driven by high food prices, with the Consumer Food Price Index shooting up to a 15-month high of 10.87%.
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India’s retail inflation jumped to a 14-month high of 6.21% in October, according to data released by the Ministry of Statistics and Programme Implementation on Tuesday.
The price rise indicator stood at 5.49% in September, 3.65% in August and 3.54% in July.
The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%. In October, the inflation rate crossed the tolerance cap of 6% for the first time since August 2023.
The surge was primarily driven by high food prices. The Consumer Food Price Index shot up to a 15-month high of 10.87%.
The index was at 9.24% in September and 6.61% in October last year.
The price rise in food items was higher in urban areas (11.09%) than in rural areas (10.69%).
Food and beverages registered an inflation of 9.69% in October, as compared to 8.36% in September. For perishables like vegetables, the rate was 42.18%, against 35.99% in September.
Oils and fats also saw a sharp increase in the inflation rate, from 2.47% in September to 9.51% in October.
“High food inflation led by strong momentum in prices of vegetable and edible oil remains a cause of concern,” Rajani Sinha, chief economist at CareEdge Ratings, was quoted as saying by The Indian Express. “The surge in vegetable prices, particularly tomatoes and...
