Retail inflation has risen to 5.49 per cent in September from 3.65 per cent in August, PTI quoted government data on Monday. The retail inflation rose mainly due to higher food prices, said government data. The consumer price index-based inflation was 5.02 per cent in September 2023.
The National Statistics Office data showed that inflation in the food basket rose to 9.24 per cent in September from 5.66 per cent in August and 6.62 per cent in the year-ago month.
The Reserve Bank, which kept the key short-term lending rate unchanged earlier this month, has been tasked by the government to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side.
A poll conducted by Reuters, of 48 economists, had forecasted the retail inflation to land at 5.04 percent for September 2024.
According to government data, food prices saw a significant spike for September as the Consumer Food Price Index (CFPI) recording a year-on-year inflation rate of 9.24%. While rural areas saw food inflation rise at 9.08 percent, the same for urban areas rose by 9.56%, said a PIB release.
The significant surge in food prices is expected to impact household expenses, with an increased pressure on essential commodities.
The All India Electricity index and inflation for the month of September, 2024 are 162.5 and 5.45% respectively. The index and inflation rate for the month of August stood at 162.4 and 4.91%, respectively, the PIB report said.
For September, a significant decline in inflation was observed in pulses and products, spices, meat and fish, and sugar and confectionery subgroup.
The central bank sees inflation easing after a few months of higher readings and expects it to average 4.5% in 2024-25, it said last week, changing its monetary policy stance to neutral and opening the door to rate cuts.
(With inputs from PTI, Reuters)