India's consumer price inflation edges up to 3.77% in September
12 October 2018
India’s retail inflation edged higher to 3.77 per cent in September, against 3.69 per cent in August, on the back of rising fuel prices and a spike in food prices. This, however, is well below the Reserve Bank of India’s medium-term inflation target of 4.0 per cent.
This, however, excludes the possibility of the RBI easing its monetary policy in December.
The monetary policy committee (MPC) of the RBI left the repo rate at 6.50 per cent while reiterating its target of keeping consumer inflation at 4.00 per cent in the medium term on a “durable basis”.”
Slower inflation in food prices, which make up nearly half of India’s consumer price index (CPI), has so far cancelled out rises in imported goods following the weakening rupee.
The annual rate of food price inflation, which accounts for about half of the consumer price index (CPI), rose to 0.51 per cent in September, against 0.29 per cent in August.
Consumer price inflation for the rural areas stood at 3.34 per cent in September 2018 against 3.41 per cent in August and 3.15 per cent in September 2017.
Consumer price inflation for the urban areas stood at 4.31 in September 2018 against3.99 in August and 3.44 per cent in September last year.
Food price inflation for rural areas stood at 0.94 in September 2018 against 1.22 per cent in August and 1.31 per cent in September last year.
Food price inflation for urban areas stood at -0.22 per cent in September 2018 against -1.21 in August and 0.36 per cent in July and 1.25 per cent in September last year.