Retail Inflation Hits 5.49 Per Cent In September: Food Prices, Electricity And Housing Push Up Costs

Retail inflation in India surged to 5.49 per cent in September 2024, marking a notable increase due to weather conditions and the impact of a high base effect.

This is a sharp rise compared to the inflation rates of 3.65 per cent in August 2024 and 3.54 per cent in July 2024.

Rural inflation stood at a higher 5.87 per cent, while urban inflation reached 5.05 cent, indicating varying cost pressures between regions.

Government data also revealed that food prices spiked significantly, with the Consumer Food Price Index (CFPI) reporting an annual inflation rate of 9.24 per cent.

The rising cost of essential goods is putting additional strain on household budgets. Aside from food, inflation in other sectors also saw changes.

Year-on-year housing inflation reached 2.78 per cent in September 2024, slightly higher than the 2.66 per cent recorded in August, though this index only covers the urban sector.

Electricity costs also climbed, with the All India Electricity Index at 162.5 for September 2024, reflecting inflation of 5.45 per cent. This marks an increase from the previous month's index of 162.4 and inflation rate of 4.91 per cent.

On a positive note, inflation in categories such as pulses, spices, meat and fish, and sugar and confectionery saw declines, providing some relief in these essential areas.