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CPI inflation jumps to 8-month high of 7.34% in September

13 Oct 2020 Evaluate

Amid continuing rise in food prices, the inflation based on the Consumer Price Index (CPI) jumped to an eight-month high of 7.34 per cent in September. The retail inflation had stood at 6.69 percent in August, while it was 3.99 per cent in September last year. That marked the highest level of inflation recorded since January, and well above the upper end of the RBI's target range of 2-6 per cent.

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that the Rural CPI (General) in September stood at 7.43 per cent as against 6.66 per cent in August. The Urban CPI (General) stood at 7.26 per cent in September as against 6.80 per cent in August.

The rate of price rise in the food basket was 10.68 per cent in September compared to 9.05 per cent in August. The data indicated that the Rural Consumer Food Price Index (CFPI) stood at 10.60 per cent in September as compared to 9.11 per cent in August. The Urban CFPI stood at 10.94 per cent in September as against 8.82 per cent in August.

Besides, the inflation in the vegetable segment was 20.73 per cent in September, way up from 11.41 per cent in the preceding month. The rate of price rise in the fruits was also high over August. Data showed that the rate of price rise in the protein-rich eggs was 15.47 per cent in September compared to 10.11 per cent a month before that. The Reserve Bank of India (RBI) mainly factors in retail inflation while deciding on the key interest rate.

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