Oct retail inflation falls to 6.77% y/y on back of food prices
NEW DELHI: India’s retail inflation eased to 6.77% in October against 7.41% in the preceding month, mainly due to easing prices in the food basket, government data showed on Monday. However, the numbers remained above Reserve Bank’s comfort level for the 10th month in a row.
The Consumer Price Index (CPI)-based retail inflation has remained above the 6% target since January this year.
As per the latest data released by the National Statistical Office (NSO), the inflation in the food basket was 7.01% in October as against 8.6% in September.
The retail inflation, which the RBI factors in while deciding its periodic monetary policy, was 4.48% in October 2021.
Food inflation, which accounts for nearly 40% of the CPI basket, rose 7.01% in October compared to 8.60% in September.
Month on month retail inflation rose 0.80% in October compared to the previous month while retail food inflation rose 1.08% - reflecting inflationary pressures in the economy.
Economists said although inflation had peaked in India, the easing process was likely to remain slow, and it could take up to two years before the inflation rate eased to 4% - the middle
level of the central bank’s target.
As the RBI failed to ensure inflation remains at 4% with a margin of 2% on either side for three consecutive quarters, it has sent a report to the government detailing the reasons for the failure and steps it is taking to bring CPI in the target range.
“The base effect-driven easing of headline inflation does not herald the beginning of easing inflationary cycle. We believe it will be the base effect that will push inflation once again to beyond 7% starting from December once the favourable effect turns decisively adverse and the headline inflation likely potentially testing the April high during February (if not earlier),” said Kunal Kundu, India economist, Societe Generale, Bengaluru. “Stubbornly high core inflation (the highest reading in eight years and rising), despite the lower headline print is indicative of the fact that price pressure is not going to go away in a hurry.”
Vishwa Vedic Sanatan Sangh, filed the suit in the Varanasi district court, seeking a ban on the entry of Muslims into the Gyanvapi complex, handing over of the complex to the Sanatan Sangh and permission to offer prayers to the “Shivling”.
On April 26, a lower court (civil judge-senior division) that was earlier hearing a plea moved by a group of women seeking permission for the daily worship of the idols of the Hindu deities on the mosque’s outer walls had ordered a videographic survey of the Gyanvapi complex. The Hindu side had claimed that a “Shivling” was found inside the mosque complex during the exercise. However, the Muslim side has maintained that the structure was part of the fountain mechanism at the “wazookhana” reservoir, where devotees carry out ritual ablutions before offering “namaz”.
The district judge is hearing another plea that has demanded a survey of the closed underground places on the Gyanvapi premises. This case will be heard on November 11.