India’s consumer price inflation down at 4.87% in October

The annual rate of inflation based on the consumer price index (CPI) in India declined to 4.87 per cent in October 2023 from 5.02 per cent in September. The CPI inflation rate was at 7.56 per cent in September 2022.

The CPI inflation rate is well within the Reserve Bank’s tolerance limit for the first time in the last five months. The previous low of 4.87 per cent was recorded in June this year.

Inflation based on the food price index, however, increased to 6.61 per cent in October 2023 from 6.56 per cent in September. Food prices account for nearly half of the overall consumer price index,

Preliminary data released by the National Statistics Office (NSO) show that overall consumer price inflation was down at 4.87 per cent in October 2023 against 5.02 per cent in September, 

Consumer price inflation for rural areas stood at 5.12 per cent in October 2023 against 5.33 per cent in September and 6.98 per cent in October 2022, while the inflation rate for urban consumers stood at 4.62 per cent in October 2023 against 4.65 per cent in September and 6.50 per cent in October 2022.

Food inflation, which accounts for nearly half of the overall consumer price basket, stood at 6.61 per cent in October 2023 against 6.62 per cent in September.

Food price inflation for rural areas stood at 6.58 per cent in October 2023 against 6.71 per cent in September and 6.53 per cent in October 2022.

While food prices have remained volatile to some extent, the rising trajectory of global crude prices and a broad-based surge in international commodity prices and logistics costs can still disturb the price situation. .