India's consumer price inflation jumps to 4.62% in October
13 Nov 2019
Consumer price inflation in the country rose further to 4.62 per cent in October 2019 from 3.99 per cent in September, breaching the upper limit of Reserve Bank of India’s tolerance band, provisional figures released by the Central Statistics Office (CSO) showed.
India’s consumer price inflation has been steadily rising after hitting 3.15 per cent in July as opposed to the wholesale price inflation that has steadily declined till September.
The inflation rate based on the consumer price index (CPI) was 3.88 per cent in October 2018.
Data released by the CSO showed that inflation rate for the food basket rose further to 7.88 per cent in October 2019 from 5.11 per cent in September. Food price inflation was at (-) 0.86 per cent in September 2018.
Consumer price inflation for the rural areas shot up further to 4.29 per cent in October 2019 from 3.24 per cent in September. It was 2.82 per cent in October 2018.
Consumer price inflation for the urban areas shot up further to 5.11 per cent in October 2019 from 4.78 per cent in September. It was 4.04 per cent in October 2018.
Food price inflation for rural areas zoomed to 6.42 in October 2019 from 3.22 per cent in September. It was (-) 0.65 per cent in October 2018.
Food price inflation for urban areas climbed further to hit a double-digit figure of 10.47 per cent in October 2019 from 8.76 per cent in September. It was (-) 1.15per cent in October 2018.
It may be noted that the Reserve Bank of India has been steadily reducing its policy interest rates for five consecutive occasions in an attempt to give a renewed push to a slowing economy.
RBI could reverse its easy money policy if the rising trend in inflation continues.