India's consumer price inflation falls to 3.31% in October
13 November 2018
India’s retail inflation declined to 3.31 per cent in October 2018 from 3.77 per cent in September, well below the Reserve Bank of India’s medium-term inflation target of 4.0 per cent, on the back of falling fuel and food prices.
This opens up 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), turned negative at (-)0.86 per cent against 0.51 per cent in September.
Consumer price inflation for the rural areas stood at 2.82 per cent in October 2018 against 3.34 per cent in September and 3.36 per cent in October 2017.
Consumer price inflation for the urban areas stood at 3.97 per cent in October 2018 against 4.31 in September and 3.81 per cent in October last year.
Food price inflation for rural areas stood at (-) 0.57 per cent in October 2018 against 0.94 in September and 1.75 per cent in October last year.
Food price inflation for urban areas stood at (-) 1.15 per cent in October 2018 against (-) 0.22 per cent in September and 2.13 per cent in October last year.