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Retail inflation jumps to double digit at 10.09% in October

13 Nov 2013 Evaluate

In a recipe of another rate hike, the provisional annual inflation rate based on all India general Consumer Price Index (CPI) (Combined) for October 2013 on point to point basis (October 2013 over October 2012) accelerated to 10.09%, higher than expectation of over 10% and much higher as compared to 9.84% for the previous month of September 2013. The corresponding provisional inflation rates for rural and urban areas for October 2013 stood at 10.11% and 10.20% respectively, compared to 9.71% and 9.93% respectively in September. 

The surge in retail Inflation data is mainly on account of spike up of food inflation, which accelerated to 12.56% against 11.44% in September. Meanwhile, Fuel and Light; Clothing, bedding and foot-ware segment registered growth of 6.97% and 9.18% over a period ago.

The data has added to the concern of policy makers, which are already struggling to combat inflation, thereby hinting that 25 basis points hike would be in store for markets, as Reserve Bank of India gears up for next monetary policy review in mid-December. Reacting on the higher-than-expected CPI number, C Rangarajan of PMEAC too has said, 'CPI at over 10% is a disturbing sign.

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