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Retail inflation eases to 3.28% in September

13 Oct 2017 Evaluate

With softening prices of vegetable and cereal, India’s retail inflation eased to 3.28% in September 2017, as compared to 4.39% in the same month previous year and 3.36% in August 2017, however, fuel and housing prices witnessed modest growth during the month. The rate is below the Reserve Bank of India's (RBI) medium-term target of 4%, while the August inflation has been revised downwards to 3.28% from 3.36%. The inflation data also showed that the Consumer Food Price Index (CFPI) - an indicator for food prices - came down to 1.25% in September from 1.52% in August.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 for September 2017, stood at 3.15%, 3.44% and 3.28% respectively, compared to 5.04%, 3.64% and 4.39% respectively in September 2016. The index value for CPI (General) for Rural was 137.6, for Urban 132.4 and for combined stood at 135.2 for the month of September. The data also showed that CFPI for all India Rural, Urban for September 2017 stood at 1.31% and 1.25% compared to 4.50% and 2.88%, respectively in September 2016. The index value of CFPI for combined stood at 138.2 for the month of September.

According to the data, vegetables prices softened to 3.92% in September as compared with 6.16% in August. Cereals prices also came down to 3.70% in September from 3.87% in August. Prices of pulses continued to fall (-) 22.51% in September, as compared to 14.33% in the same month last year and a contraction of (-) 24.40% in the month before. Food and beverages during the month under consideration came at 1.76% from 4.12% in the same month last year. However, fuel inflation rose 5.56% in September, as compared with 3.07% in the September 2016 and 4.94% in August 2017. Similarly, housing inflation grew 6.10% in September, other notable categories such as milk-based products became dearer by 3.87% and meat and fish recorded a rise of 3.19%.

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