Retail Inflation Data: Good news on the inflation front, retail inflation in October at 6.77 percent

Retail Inflation Data : Good news is coming out on the inflation front in the country. Retail Inflation has decreased in October as compared to September. In the month of October, the retail inflation rate has come down to the lowest level of 3 months at 6.77 percent. However, it is less than the 5-month high of 7.41 per cent in September.

wholesale inflation relief

At the same time, there has been a big relief on the front of wholesale inflation. The commerce ministry presented the wholesale inflation data. In this, in the last 19 months, there has been a big decline in wholesale inflation and it has reached single digit. According to the data, the inflation rate based on Wholesale Price Index has come down to 8.39 percent in the month of October. In September it was at 10.7 percent. Wholesale inflation was in double digits in September, but has come down to single digits in October.

this is the reason

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According to the retail inflation data released on Monday, this decline has come due to softening in the prices of food items. Despite this decline, the retail inflation rate in October remained above the RBI’s target band of 2 to 6 percent. Every month this year the inflation rate has remained above the band of RBI. According to sources, interruptions were also seen in the supply chain, behind which geopolitical reasons and increase in commodity prices are believed to be the reason. This increased the pressure on inflation. At the same time, the inflation of food items for October has been 7.01 percent, which was present at 8.6 percent in the previous month.

What has been the repo rate of RBI

The Reserve Bank of India (RBI) takes retail inflation as a barometer for announcing its policy rates. It is estimated that it may remain less than 7 percent. On the basis of this retail inflation rate, the Reserve Bank announces the repo rate. From May to September, the Reserve Bank has increased the repo rate by 1.90 basis points. Right now the repo rate is 5.90 percent which is based on the retail inflation rate. The increase in the repo rate is being seen because retail inflation is running above the Reserve Bank’s tolerance rate of 6 percent.

What is CPI based inflation

Inflation based on the Consumer Price Index (CPI) tracks changes in the retail prices of goods and services that households buy for their daily use. To measure inflation, it is estimated that what is the percentage increase in CPI during the same period last year.

Rural, urban figures are ready

RBI looks at this figure to keep the prices stable in the country’s economy. Retail prices for a particular commodity can be seen in CPI. These are seen at the level of rural, urban and all India. The change in price index within a period of time is also called CPI based inflation or retail inflation.

7.41 percent in September

In the month of September, the retail inflation has increased to 7.41 percent. The retail inflation rate was 7 per cent in August and 6.71 per cent in July. A year ago, in September 2021, the retail inflation rate was 4.35 percent. There has also been a jump in the inflation rate of food items. Food inflation has reached 8.60 percent in the month of September, which was 7.62 percent in August. In the month of September, there has been a jump in the food inflation rate in both urban and rural areas.

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