New Delhi: The retail inflation in the country eased to a four-month low in October. The retail inflation in October is at 4.87%. The cooling prices of food items is the main reason for this. Data released by the National Statistical Office (NSO) revealed this.
The Consumer Price Index (CPI) based retail inflation fell to a three-month low of 5.02% in September. The previous low inflation was recorded at 4.87% in June.
Food inflation, which accounts for nearly half of the overall consumer price basket, rose 6.61% in October as compared with 6.56% in September.
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‘The CPI inflation came in line with our expectations. The moderation provides some relief, especially as core inflation has remained comfortable. However, we expect the trend of sub-5% headline inflation to remain brief with most of FY24 ahead likely to remain above 5%. Overall, we continue to expect the MPC to remain on an ‘extended pause’ phase in rates, with liquidity being used as a more frequent tool to manage the stance,’ said Upasna Bhardwaj, chief economist, Kotak Mahindra Bank.
Wholesale Price Index (WPI) is a measure of the average change in the price of goods at a wholesale level or in the wholesale market. Consumer Price Index (CPI) is a price index that calculates price changes of goods and services that a consumer has to pay in the retail market. The monetary police of Reserve Bank of India is made after reviewing the CPI.
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