Retail inflation touches 7.61%, highest since June 2014

Consumer Price Index-based retail inflation touched 7.61% in October, which is the highest since June 2014. It was also higher than 7.3% in September and 4.6% in October 2019.

Shivani Sharma, Mohsin Shaikh

Food prices firmed to 6-month high of 10.2%, higher than 6.9% in the same month last year and 9.7% in September 2020.

Inflation in pan, tobacco and intoxicants remained nearly unchanged from a month ago at 10.7%, much higher than 3.9% in October 2019.

On year-on-year basis, inflation was higher across main segments barring housing. Inflation of clothing and footwear in October 2020 is estimated at 3.2% on year-on-year basis.

Housing inflation increased by 40 bps to 3.3% than 2.8% in September 2020 though it was lower than the 4.6% in October last year.

Fuel and light inflation registered sustained moderation in 4th consecutive month at 2.3%, lower than 2.9% in the previous month, though higher than -2% in October 2019. Reduction in LPG prices and muted global crude oil prices kept lid to this segment.