Retail Inflation Data: Good news is coming out on the inflation front in the country. Compared to September, the retail inflation rate has decreased in October. In the month of October, the retail inflation rate has come down to a 3-month low of 6.77 percent. However, this is lower than the 5-month high of 7.41 percent in September.
Relief in wholesale inflation
Its Also, there has been a big relief on the wholesale inflation front. Before the retail inflation, the commerce ministry presented the wholesale inflation data. In which there has been a major decline in wholesale inflation in the last 19 months and it has reached single digits. According to government data, the inflation rate based on the wholesale price index has come down to 8.39 percent in the month of October. In September it was 10.7 percent. Wholesale inflation was in double digits in September but has fallen to single digits in October.
This is the reason
According to the retail inflation data released on Monday, this decline has come due to softening in the prices of food and drink items. Despite this decline, retail inflation remained above the RBI’s target of 2 to 6 percent in October. Inflation has remained above the RBI band every month this year.
According to sources, disruptions were also seen in the supply chain, behind which were geopolitical reasons and commodity prices. An increase is being considered. This added pressure on inflation. Along with this, the food inflation rate for October has been 7.01 percent, which was at 8.6 percent in the previous month. /div>
The Reserve Bank of India (RBI) uses the retail inflation rate as a benchmark for its policy rate announcements. It is estimated that it may remain less than 7 percent. The Reserve Bank announces the repo rate based on this retail inflation rate. From May to September, the Reserve Bank has increased the repo rate by 1.90 basis points. Currently, the repo rate is 5.90 percent, which is based on the retail inflation rate. The increase in repo rate is being seen as retail inflation is running above the Reserve Bank’s tolerance rate of 6 percent.
What is CPI based inflation< /strong>
What is consumer price index (CPI) inflation? The CPI tracks changes in the retail prices of goods and services that households buy for their daily use. To measure inflation, it is estimated that the CPI increased during the same period of the previous year. What is the percentage increase in.
Rural, urban data are prepared
RBI prices in the country’s economy It looks at this figure to keep it stable. CPI is the retail price for a particular commodity. can be seen in These are observed at rural, urban and all India level. The change in the price index over time is also called CPI-based inflation or retail inflation. />In the month of September, retail inflation has increased to 7.41 percent. The retail inflation rate was 7 percent in August and 6.71 percent in July. A year ago in September 2021, the retail inflation rate was 4.35 percent. There has also been a surge in the inflation rate of food items. Food inflation has reached 8.60 percent in September, which was 7.62 percent in August. In the month of September, there has been a jump in the food inflation rate in urban and rural areas.
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