ECONOMY
CPI-based retail inflation spikes to 5.49% in September, driven by high food prices
- IBJ Bureau
- Oct 15, 2024
Retail inflation has risen to 5.49 per cent in September from 3.65 per cent in August, according to the government data. Retail inflation, based on the Consumer Price Index (CPI) shot up mainly due to higher food prices. The CPI-based inflation was 5.02 per cent in September 2023.
The National Statistics Office (NSO) data showed that inflation in the food basket rose to 9.24 per cent in September from 5.66 per cent in August and 6.62 per cent in the year-ago month.
The RBI, which recently kept the key short-term lending rate unchanged, has been tasked by the government to ensure that inflation remains at 4 per cent with a margin of 2 per cent on either side.
According to the government data, food prices saw a significant spike for September as the Consumer Food Price Index (CFPI) recorded a year-on-year inflation rate of 9.24 per cent. While rural areas saw food inflation rise at 9.08 per cent, the rate for urban areas rose by 9.56 per cent, said a PIB release.
The central bank sees inflation easing after a few months of higher readings and expects it to average at 4.5 per cent in 2024-25. The RBI has changed its monetary policy stance to neutral and opened the door to rat
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