India’s retail inflation fell to a five-month low in October
There was a decline in fuel prices compared to the previous year
According to data released by the National Statistics Office, retail inflation in India fell to a five-month low of 4.87 per cent in October.
Accordingly, the inflation rate is also lower than the corresponding figure of 5.02 per cent recorded in September. This is reported by
IANS, a partner of TV BRICS.
There was a year-on-year decline in fuel prices as the government cut LPG prices ahead of elections to key state legislative assemblies, which will be followed by Lok Sabha (lower house of parliament) elections in the first half of next year.
Food inflation, which accounts for nearly half of the overall consumer price index (CPI), stood at 6.71 per cent in October as compared to 6.56 per cent in September.
Prices of edible oils declined by 13.69 per cent and vegetable prices remained under control, bringing relief to consumers.
However, pulses continue to be a concern as prices rose by 18.79 per cent during the month and spices went up by as much as 22.76 per cent.
Cereals, including wheat and rice, also recorded double-digit growth of 10.69 per cent during the month.
Consumer price inflation is now closer to the four per cent midpoint of the Reserve Bank of India’s (RBI) target range (2-6 per cent) and will allow it to keep interest rates unchanged even as the risk of crude oil prices falling due to uncertainty in the global economy.
The lower inflation rate is in line with the expectations of RBI, which has kept the key interest rate unchanged to boost the country’s economic growth.