India's consumer price inflation nosedives to 2.33% in October
12 Dec 2018
India’s consumer price inflation declined to 2.33 per cent in November 2018, falling nearly one percentage point from 3.31 per cent in October, and 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, under the new governor, easing its monetary policy at its next meeting after 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 inflation in food prices, which account for about half of the consumer price index (CPI), declined further to (-) 2.61 per cent in November from (-) 0.86 per in October.
Consumer price inflation for the rural areas stood at 1.71 per cent in November 2018, down from 2.82 per cent in October and 4.79 per cent in November 2017.
Consumer price inflation for the urban areas stood at 3.12 per cent in November 2018 against 3.97 per cent in October and 4.90 per cent in November last year.
Food price inflation for rural areas stood at (-) 2.33 per cent in November 2018 against (-) 0.57 per cent in October and 4.04per cent in November last year.
Food price inflation for urban areas stood at -3.04 in November 2018 against (-) 1.15 per cent in October and 4.90 per cent in October last year.