English
Retail Inflation Latest Update: India’s retail inflation on Wednesday increased to 7.41 per cent in September as compared with 7 per cent in the previous month, according to official data. Notably, September witnessed the five-month high inflation amid a surge in food prices. However, the Index of Industrial Production (IIP) witnessed a fall of 0.8 per cent in August as compared with a growth of 2.4 per cent in July. The retail inflation went up to 7.41 per cent in September, mainly due to costlier food items.
The retain inflation in rural areas in September went up to 7.56 per cent, while that in urban areas accelerated to 7.27 per cent, according to the latest data from the National Statistical Office (NSO). The retail inflation had stood at 4.35 per cent in September 2021.
Significantly, the retail inflation has remained above the Reserve Bank of India’s tolerance level of 6 per cent for the ninth month in a row.
Official data released on Wednesday showed that the retail inflation based on Consumer Price Index (CPI) was at 7.41 per cent in September. It was at 7 per cent in August and 4.35 per cent in September 2021.
Inflation in food basket rose to 8.60 per cent in September this year from 7.62 per cent in August.
With inflation remaining above the 6 per cent level, RBI, now, will have to give a report to the central government giving reasons for failure to contain inflation at 4 per cent with a bias of 2 per cent on either side.
The central government has mandated RBI to ensure that retail inflation remains in the range of 2-6 per cent.
In September, RBI Governor Shaktikanta Das said acute imported inflation pressures felt at the beginning of this fiscal year have eased but it still remains elevated across food and energy items.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.