CPI inflation in September 2024 jumped to a nine-month high of 5.49 percent on account of high food prices, according to official data released on October 14. The previous high CPI was recorded in December 2023 at 5.69 percent.
This also marks the index crossing the Reserve Bank of India’s 4 percent target. CPI for August fell to a five-year low of 3.65 percent.
Data released by the National Statistics Office (NSO) data showed that inflation in the food basket rose to 9.24 percent in September from 5.66 percent in August and 6.62 percent in the year-ago month.
Corresponding inflation rates for rural and urban came at 5.87 percent and 5.05 percent.
The Consumer Price Index or CPI measures retail inflation by examining the changes in prices of most common consumer goods and services. CPI is calculated for a fixed list of items including food, housing, apparel, transportation, electronics, medical care, education, etc.
Meanwhile, the wholesale price inflation (WPI) rose to 1.84 percent in September as food items, especially vegetables, turned costlier, as per the government data released today. The WPI-based inflation was 1.31 percent in August. It was (-)0.07 percent in September 2023.
Inflation in food items shot up to 11.53 percent last month against 3.11 percent in August. This was led by 48.73 percent inflation in vegetables as against (-)10.01 percent in August. Inflation in potato and onion continued to be high at 78.13 percent and 78.82 percent, respectively in September.
Fuel and power category witnessed deflation of 4.05 percent in September against a deflation of 0.67 percent in August.