October retail inflation touches 16-month high of 4.62% on high vegetable prices
Retail inflation skyrocketed on the back of high vegetable prices. Last month saw exorbitant onion and tomato prices due to unseasonal rains, disruption in supply chain and acquisition restrictions on traders.
- Nov 13, 2019,
- Updated Nov 13, 2019 9:32 PM IST
Retail inflation touched a 16-month high of 4.62 per cent in October due to higher food prices, showed data released by National Statistics Office. Notably, this is the first month since August 2018 that retail inflation has breached the 4 per cent medium-term target set by the Reserve Bank of India. Meanwhile, inflation in food basked rose to 7.89 per cent in October.
Retail inflation, calculated on the basis of Consumer Price Index (CPI), skyrocketed on the back of high vegetable prices. Last month saw exorbitant onion and tomato prices due to unseasonal rains, disruption in supply chain and acquisition restrictions on traders.
Vegetables saw the highest inflation rate of 26.10 per cent in October, followed by pulses and products at 11.72 per cent. Meat and fish showed an inflation rate of 9.75 per cent, whereas eggs got costlier by 6.26 per cent. Remaining items in the food basket reported inflation rates in the range of 1.33 per cent o 4.08 per cent.
Fuel and light became cheaper in October as inflation in the segment declined by 2 per cent. Transport and communication also became marginally cheaper, posting a deflation rate of 0.47 per cent.
Retail inflation touched a 16-month high of 4.62 per cent in October due to higher food prices, showed data released by National Statistics Office. Notably, this is the first month since August 2018 that retail inflation has breached the 4 per cent medium-term target set by the Reserve Bank of India. Meanwhile, inflation in food basked rose to 7.89 per cent in October.
Retail inflation, calculated on the basis of Consumer Price Index (CPI), skyrocketed on the back of high vegetable prices. Last month saw exorbitant onion and tomato prices due to unseasonal rains, disruption in supply chain and acquisition restrictions on traders.
Vegetables saw the highest inflation rate of 26.10 per cent in October, followed by pulses and products at 11.72 per cent. Meat and fish showed an inflation rate of 9.75 per cent, whereas eggs got costlier by 6.26 per cent. Remaining items in the food basket reported inflation rates in the range of 1.33 per cent o 4.08 per cent.
Fuel and light became cheaper in October as inflation in the segment declined by 2 per cent. Transport and communication also became marginally cheaper, posting a deflation rate of 0.47 per cent.