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Retail inflation rises marginally to 4.48% in October; IIP grows 3.1% in September


NEW DELHI: Retail inflation based on consumer price index (CPI) for the month of October rises marginally to 4.48 per cent as against 4.35 per cent recorded in September, data released by government showed on Friday. The inflation numbers have remained within the Reserve Bank of India’s (RBI) comfort zone for fourth straight months now. The RBI mainly factors in retail inflation while arriving at its bi-monthly monetary policy. Reserve Bank’s monetary policy committee (MPC) has been tasked by the government to tame retail inflation based on consumer price index (CPI) at 4 per cent (+,-2 per cent). Vegetable prices, especially key ingredients in cooking like onions and tomatoes, rose sharply after unseasonal rains damaged produce last month. Global oil prices rallied during the month, which pushed up petrol prices. However, the Centre’s move to cut excise duty rates on petrol and diesel is significantly positive move for inflation, RBI governor Shaktikanta Das said at a recent event. The central bank had earlier flagged the risk of higher taxes on fuel to the government and had urged it to take a policy decision. With food inflation under control, Das expects that inflation will be under central bank’s target. The RBI had lowered its full year 2021-22 retail inflation projection to 5.3 per cent from 5.7 per cent in October, saying the inflation trajectory has turned out to be more favourable than expected. Globally, rising inflation rate has been a source of concern.


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