Retail inflation fell to 4.35 per cent in September
Retail inflation fell sharply to 4.35 per cent in September from 5.30 per cent in August, mainly due to easing in food prices, government data showed on Tuesday.
Consumer Price Index based (CPI) inflation stood at 5.30 per cent in August and 7.27 per cent in September 2020.
According to data released by the National Statistical Office (NSO), inflation in the food basket declined to 0.68 per cent in September 2021, down from 3.11 per cent in the previous month.
The Reserve Bank of India (RBI), which primarily factors in CPI-based inflation while arriving at its bi-monthly monetary policy, has been tasked by the government to keep it at 4 per cent, with a tolerance band of 2 per cent. Both sides.
Last week, RBI Governor Shaktikanta Das had said that overall, the CPI headline momentum is waning, which coupled with favorable base effects in the coming months, could lead to substantial near-term inflation moderation.
RBI forecasts CPI inflation at 5.3 per cent for 2021-22: 5.1 per cent in Q2, 4.5 per cent in Q3; 5.8 percent in the last quarter of the financial year, the risk is broadly balanced
(with PTI input)
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