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CPI inflation inches up to 3.77% in September

15 Oct 2018 Evaluate

Halting two-month easing trend, India’s retail inflation based on Consumer Price Index (CPI) inched up to 3.77% in the month of September 2018, as compared to a 10-month low of 3.69% recorded in August 2018 and 3.28% in September 2018. The rise is mainly on account of higher fuel and food prices coupled with depreciating rupee. However, the inflation rate has remained well within the Reserve Bank of India’s (RBI’s) medium-term inflation target of 4% with (+/-) 2% range. Besides, the annual rate of food price inflation, which accounts for about half of the consumer price index (CPI), rose to 0.51% in September, against 0.29% in August, though it was lower than 1.25% in September 2017.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for September 2018, stood at 3.34%, 4.31% and 3.77% respectively, compared to 3.15%, 3.44% and 3.28%, respectively in September 2017. The index value of CPI for combined stood at 140.3. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for September 2018 stood at 0.94% and (-) 0.22%, respectively, compared to 1.31% and 1.25%, respectively in September 2017. The index value of CFPI for combined stood at 138.9 for the month of September.

In categories such as cereals, meat and fish, eggs, milk products, retail inflation showed an upward trend. However, in fruits the inflation rate moderated in September. The Food and beverages inflation was at 1.08% in September, while Pan, tobacco and intoxicants stood at 5.57%. Moreover, during September, clothing and footwear inflation was at 4.64%, housing inflation at 7.07%. In fuel and light category, the rate of price rise was at 8.47% in September. Also, miscellaneous category which includes items like household goods and services, health, transport and communication, recreation and amusement, Education, personal care and effects etc witnessed inflation rate of 5.65%.

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