Surging for the third straight month, the retail or the Consumer Price Index (CPI) inflation for the month of October rose 5 percent, accelerating from a 4.41% in September and 4.62 percent in October last year, on the back of costlier pulses and other food items. Higher demand for consumer durables and food items during the festival season beginning in October also contributed to inflation.
As per the data released by the Ministry of Statistics and Programme Implementation, the Consumer Price Index (CPI) on Base 2012=100 for Rural, Urban and Combined for the Month of October 2015 stood at 5.54%, 4.28% and 5.00% respectively, as against 5.05%, 3.61% and 4.41% respectively in September 2015. Meanwhile, Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for the month of October 2015 stood at 5.18%, 5.47% and 5.25% respectively.
The General Indices (Provisional) for the month of October 2015 for Rural, Urban and Combined are 127.7, 124.2 and 126.1 respectively. The CFPI for Rural, Urban and Combined for the same month are 132.0, 133.1 and 132.4 respectively.
Retail Inflation for the month under review declined mainly on account of food inflation. The overall consumer food inflation during the month rose to 5.25 percent in October, according to the government data. The vegetable and fruits price inflation stood at 2.42 percent and 1.98 percent respectively in October. Meanwhile, the inflation in pulses and products category rose to a staggering 42.20 percent in October, which pushed up the overall index for food and beverages to 5.34 percent. Inflation in cereals and products was also higher at 1.46 percent. Besides, the price rise in spices category was higher at 9.82 percent and for non-alcoholic beverages at 4.31 percent. Inflation in sugar and confectionery category remained in negative zone at (-) 10.47 percent.
However for protein rich items such as meat and fish, the rate of price rise has slowed to 5.01 percent. Likewise, rate of retail price rise in milk and its products was 4.79 percent. Further, eggs also turned cheaper at 0.59 percent during the month.
The Reserve Bank of India (RBI) predicts inflation will accelerate to 5.8% by January 2016.The RBI takes into account retail inflation while formulating monetary policy.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: