Continuing the downward trend, retail inflation slipped to a four-month low of 4.87% in October, mainly due to easing food prices and inched towards the Reserve Bank’s target of 4%, according to government data released on Monday.
‘Oil amp; fat’ inflation declines by 13.73%
- Inflation in the ‘oil and fat’ segment declined by 13.73%, while it remained subdued in the case of vegetables, meat and fish
- Inflation in the food basket was 6.61%, marginally down from 6.62% in September
The Consumer Price Index (CPI)-based retail inflation fell to a three-month low of 5.02% in September. The inflation was recorded at 4.87% in June.
The Reserve Bank of India’s Monetary Policy Committee (MPC), in its October meeting, projected CPI inflation at 5.4% for 2023-24, a moderation from 6.7% in 2022-23.
The government has tasked the RBI to ensure the CPI inflation remains at 4% with a margin of 2% on either side. Retail inflation has been on the decline after it touched a high of 7.44% in July in the current fiscal.
As per the data released by the National Statistical Office (NSO), the inflation in the food basket was 6.61%, marginally down from 6.62% in September and 7% in the year-ago month.
