Retail inflation based on Consumer Price Index (CPI) inched up to 4.48 per cent in October compared to 4.35 per cent in September, due to an uptick in food prices. Though, it eased compared with 7.61 per cent in October 2020. For the fourth month in a row, CPI has been below the Reserve Bank of India’s six percent margin. The Government of India had told RBI to maintain a retail inflation rate at four percent with an upper and lower margin of two percent on either side for five years, till March 2026.
The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that the Rural CPI (General) in October 2021 stood at 4.07 per cent as against 4.13 per cent in September. The Urban CPI (General) stood at 5.04 per cent in October as against 4.57 per cent in September. The index value for Rural, Urban and Combined CPI (General) stood at 166.3, 164.6 and 165.5, respectively, in October 2021.
As per the data released by the NSO, inflation in food basket rose to 0.85 per cent in October, compared to 0.68 per cent in the preceding month. Inflation rate for oils and fats was recorded at 33.5 per cent, up from 34.2 per cent and for pulses was recorded at 5.42 per cent against 8.8 per cent a month ago. Clothing and footwear inflation was 7.53 per cent in October, up from 7.2 per cent in September. Fuel and light inflation stood at 14.3 per cent, the highest level in the 2011-12 base year series. Transport and communication inflation jumped to a four-month high of 10.9 per cent in October.
The Price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of October 2021, NSO collected prices from 99.6% villages and 98.2% urban Markets while the Market-wise prices reported therein were 88.4% for rural and 91.8% for urban.
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