India's Retail Inflation Drops to 4.87% in October 2023
Consumer Price Index Numbers on Base 2012=100 for Rural, Urban, and All-India
All-India CPI-IW for October 2023 Increased by 0.9 Points to 138.4
The National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI) has released the All India Consumer Price Index (CPI) for October 2023. The CPI for All Urban Consumers (CPI-U) remained unchanged in October on a seasonally adjusted basis.
The retail inflation rate based on the CPI-U has declined from 5.59% in September 2023 to 4.87% in October 2023. This is within the Monetary Policy Committee's target range of 2-6%. The National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI) has released the All India Consumer Price Index (CPI) for October 2023.
The decline in inflation has been attributed to lower food prices, particularly vegetables and fruits, as well as a decrease in fuel and light prices. However, the core inflation rate, which excludes volatile food and energy prices, has remained sticky at 5.9% year-on-year, indicating underlying inflationary pressures.
Conclusion
The latest CPI data provides some relief as inflation has eased from its recent peak. However, the persistence of core inflation signals that the Reserve Bank of India (RBI) may continue its monetary tightening stance in the coming months to ensure that inflation remains within its target range and supports the economy's recovery from the COVID-19 pandemic.
Comments