After rising in the month of September, India’s retail inflation based on Consumer Price Index (CPI) softened to a one-year low of 3.31% in the month of October 2018, the back of cheaper kitchen staples, fruits and protein-rich items. The retail inflation number is the lowest since September 2017 when it touched 3.28%. The CPI was 3.77% in September 2018 and 3.58% in October 2017. Besides, inflation remained below the Reserve Bank of India’s medium-term target of 4% for the third straight month. Besides, the annual rate of food price inflation contracted by 0.86% in October 2018, as against 1.90% in October 2017 and 0.51% in September 2018.
As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for October 2018, stood at 2.82%, 3.97% and 3.31% respectively, compared to 3.36%, 3.81% and 3.58%, respectively in October 2017. The index value of CPI for combined stood at 140.6. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for October 2018 stood at (-) 0.57% and (-) 1.15%, respectively, compared to 1.75% and 2.13%, respectively in October 2017. The index value of CFPI for combined stood at 138.2 for the month of October.
According to the data, vegetable prices declined by 8.06% in October against a 4.15% contraction in September. Pulses and products inflation also contacted to 10.28% in the reporting month. Inflation also slowed to 0.35% in the fruit basket as against 1.12% recorded a month ago. The retail inflation also cooled in protein-rich items like cereals, eggs, milk and related products. However, inflation quickened to 8.55% for the 'fuel and light' category against 8.47% in the previous month. In non-food items, fuel inflation rose to 8.55% in October against 8.47% in September.
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