Consumer price inflation at a 7-month high of 3.58% in October

news
14 November 2017

Consumer price inflation based on the consumer price index stood at 3.58 per cent in October 2017, the highest since the 3.89 per cent level hit in March this year.

Consumer price index-based inflation was 3.28 per cent in September this year while it was 4.2 per cent in October 2016.

The spike in consumer price inflation was driven mostly by a doubling of vegetable price index to 7.47 per cent from 3.92 per cent in September, data released by the Central Statistics Office (CSO) showed.

In October, inflation rate for the food basket increased to 1.9 per cent from levels of 1.25 per cent in September.

The rate of price rise in the vegetable segment almost doubled to 7.47 per cent against 3.92 per cent in September.

Prices of protein-rich items like eggs and milk (and its products) also increased. However, fruits were comparably cheaper in October on a sequential basis.

Prices of pulses continued to decline by as much as 23.13 per cent. It was lower by 22.51 per cent in September.

The government is releasing consumer price inflation data since January 2012 based on combined data for rural and urban consumers.

Consumer price inflation for the rural areas stood at 3.36 per cent in October against 3.15 per cent in September and 3.15 per cent in October 2016.

Consumer price inflation for the urban areas stood at 3.81 per cent in October against 3.44 per cent in September and 3.44 per cent in October 2016.

Food price inflation (combined) stood at 1.90 per cent in October  against 1.25 per cent in September and 3.32 per cent in October 2016.

Food price inflation for rural areas stood at 1.75 per cent in October against 1.31 per cent in September and 3.86 per cent in October 2016.

Food price inflation for urban areas stood at2.13 per cent in October against 1.31 per cent in September and 2.33 per cent in October 2016.

RBI's Monetary Policy Committee (MPC) has a mid-term inflation target of 4 per cent.





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