Retail Inflation Eases To 14-Month Low Of 4.2 Per Cent, Bolsters Rate Cut Hopes

Indian shoppers browse at a supermarket in Mumbai. Photo credit: INDRANIL MUKHERJEE/AFP/GettyImages

India's annual retail inflation eased last month to 4.2 per cent from 4.39 per cent in September and 5 per cent reported during the corresponding period last year, while wholesale prices fell marginally to 3.39 per cent for October, official data showed on Tuesday.

According to Consumer Price Index (CPI) data released by the Central Statistics Office (CSO), the fall in retail inflation was mainly due to a drop in the annual food inflation – from 3.96 per cent in September to 3.32 per cent in October. The CPI data revealed that the annual retail inflation for rural India was 4.78 per cent, while that for the urban centres was 3.54 per cent. The annual food inflation was 3.86 per cent in rural areas and 2.33 per cent in the urban conclaves.

The official data further showed that prices of vegetable plunged by (-) 5.74 per cent on a year-on-year (YoY) basis, whereas the cost of pulses increased by 4.11 per cent. The prices of milk and milk-based products surged by 4.42 per cent. Other protein-based food items such as meat and fish became dearer by 6.16 per cent . Edible oils and fats prices increased by 3.80 per cent while those for sugar and confectionery edged up by 23.62 per cent on a YoY basis.

Official data earlier on Tuesday showed even as prices of pulses and potatoes ruled high, India's annual rate of inflation based on wholesale prices fell marginally to 3.39 per cent for October from 3.57 per cent for the previous month. According to data on the wholesale price index released by the Commerce and Industry Ministry, the annual inflation rate has climbed to the current level from a decline of (-)3.70 percent in October last year.

The easing of key price indices makes the context favourable for a rate cut by the Reserve Bank of India at its next monetary policy review due early next month.

With inputs from IANS

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber