Retail Inflation: India’s Consumer Price Index (CPI)-based inflation showed a notable decline in October, reaching a five-month low of 4.87%, as reported by the Ministry of Statistics and Programme Implementation on November 13. This figure follows a September reading of 5.02%, marking a positive trend after a two-month interval.
India’s October CPI Inflation at Five-Month Low, Measuring 4.87%
While the latest inflation data aligns with economists’ expectations, it’s noteworthy that the headline inflation has consistently exceeded the Reserve Bank of India’s (RBI) medium-term target of 4% for 49 consecutive months. However, for the second consecutive month, it has remained within the RBI’s acceptable range of 2-6%.
The stability in October’s inflation was attributed to offsetting factors within the food category, maintaining overall food inflation at September levels. The noteworthy contributors were vegetables, with a 3.4% month-on-month increase, primarily influenced by a 15% rise in onion prices. On the flip side, disinflationary trends were supported by stable potato prices and a 19% month-on-month decrease in tomato prices.
This latest inflation report suggests a degree of stability, but the persistent deviation from the medium-term target emphasizes the ongoing challenges in achieving sustained price control.