New Delhi: retail inflation Data released by the government on Friday showed that the consumer price index (CPI) for the month of October rose marginally to 4.48 per cent as against 4.35 per cent recorded in September.
Inflation figures remain in the comfort zone of the Reserve Bank of India (RBI) for the fourth consecutive month.
The RBI primarily factors in retail inflation while arriving at its bi-monthly monetary policy.
The Reserve Bank’s Monetary Policy Committee (MPC) has been tasked by the government to control retail inflation based on the Consumer Price Index (CPI) to 4 per cent (+,-2 per cent).
Prices of vegetables, especially important cooking ingredients like onions and tomatoes, rose sharply after unseasonal rains last month damaged the produce.
Global oil prices rose during the month, leading to a rise in petrol prices.
However, the Centre’s move to cut excise duty rates on petrol and diesel is quite a positive step for inflation, RBI Governor Shaktikanta Das said at a recent event.
The central bank had earlier informed the government about the risks of higher taxes on fuel and urged it to take a policy decision.
With food inflation under control, Das expects inflation to be under the central bank’s target.
The RBI had cut its full year 2021-22 retail inflation forecast to 5.3 per cent from 5.7 per cent in October, saying the inflation trajectory has turned out to be more favorable than expected.
Globally rising inflation rate has been a matter of concern.
Inflation figures remain in the comfort zone of the Reserve Bank of India (RBI) for the fourth consecutive month.
The RBI primarily factors in retail inflation while arriving at its bi-monthly monetary policy.
The Reserve Bank’s Monetary Policy Committee (MPC) has been tasked by the government to control retail inflation based on the Consumer Price Index (CPI) to 4 per cent (+,-2 per cent).
Prices of vegetables, especially important cooking ingredients like onions and tomatoes, rose sharply after unseasonal rains last month damaged the produce.
Global oil prices rose during the month, leading to a rise in petrol prices.
However, the Centre’s move to cut excise duty rates on petrol and diesel is quite a positive step for inflation, RBI Governor Shaktikanta Das said at a recent event.
The central bank had earlier informed the government about the risks of higher taxes on fuel and urged it to take a policy decision.
With food inflation under control, Das expects inflation to be under the central bank’s target.
The RBI had cut its full year 2021-22 retail inflation forecast to 5.3 per cent from 5.7 per cent in October, saying the inflation trajectory has turned out to be more favorable than expected.
Globally rising inflation rate has been a matter of concern.
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