India’s retail inflation, based on the Consumer Price Index (CPI), rose to 5.54 per cent in September, mainly due to higher food prices. According to government data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), corresponding inflation rates for rural and urban areas are 6.08 per cent and 4.88 per cent, respectively.ย
The Consumer Price Index-based inflation was at 4.83 per cent in August. September inflation is the highest in the new index series released in January.ย Inflation in the food basket rose to 7.74 per cent from 5.97 per cent the previous month.
Last week, the Reserve Bank hiked the benchmark lending rate (repo) by 25 basis points to 5.50 per cent amid inflationary concerns.
Food inflation rose to 7.74 per cent in September
September inflation was at its highest level since the new index series was released in January. Food inflation rose to 7.74 per cent in September, compared to 5.97 per cent in the previous month. With this increase, inflation rose above the Reserve Bank of India’s (RBI) target of 4 per cent, though it remains within the central bank’s acceptable range of 2-6 per cent. The Reserve Bank of India (RBI) had raised the repo rate by 0.25 per cent to 5.50 per cent last week amid inflation concerns.
Sharp rise in onion prices
Food inflation, measured by the Consumer Food Price Index (CFPI), rose to 7.74 per cent in September from 5.97 per cent in August. Among major commodities, onion prices recorded the highest increase. Inflation for onion rose to 108.09 per cent from 48.78 per cent in August. Inflation for garlic rose to 54.62 per cent from 43.60 per cent, while lemon prices rose to 36.41 per cent compared to 15.15 per cent in the previous month.
Inflation increased in all other sectors
Apart from these, inflation in personal care, social protection and other goods and services was 13.75 per cent in September, while prices of accommodation services in restaurants and hotels rose 9.36 per cent. Inflation in transport was 5.01 per cent, with the cost of running private vehicles up 7.46 per cent. Inflation in the health sector was 1.40 per cent; in housing and utilities, 2.74 per cent; and in education services, 3.94 per cent.
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