The government data on Monday showed that retail inflation declined to 4.87 per cent in October from 5.02 per cent in September. Furthermore, the Consumer Price Index-based retail inflation had dropped to three-month low of 5.02 per cent in September.<\/p>\n\n\n\n
Notably, the RBI\u2019s Monetary Policy in its October meeting had projected CPI inflation at 5.4 per cent for 2023-24, a moderation from 6.7 per cent in 2022-23. Reserve Bank of India governor Shaktikanta Das had said that the fight against inflation is not over yet and stated that the central bank wants to keep inflation at 4%, and not between 2-6%.<\/p>\n\n\n\n
Reports said that the government has tasked the RBI to ensure that the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side. The RBI mainly factors in the retail inflation while arriving at its bi-monthly monetary policy.<\/p>\n\n\n\n
Reacting to India\u2019s retail inflation decline, Chief economist at India Ratings and Research Devendra Pant told Reuters that the decline in inflation is good but the structural nature of food inflation, particularly cereals, which have remained in double digits in the last 14 months is a cause of concern. He added that they expect the Reserve Bank of India to maintain the status quo in forthcoming monetary policy.<\/p>\n\n\n\n
The food inflation, which accounts for nearly half of the overall consumer price basket, surged 6.61% in October as compared with 6.56% in September, as per the report shared by the government.<\/p>\n\n\n\n
Suman Chowdhury, Chief Economist and Research Head at Acuite Ratings and Research told Reuters that given the concerns on the yield in the upcoming kharif crop and the El Nino phenomenon, the downside risks to food inflation remain. He underlined that they expect the headline inflation to average 5.6% in FY24 and remain in the band of 5.0%-5.5% in the second half of the fiscal year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Food inflation, which accounts for nearly half of the overall consumer price basket, surged 6.61% in October as compared with 6.56% in September<\/p>\n","protected":false},"author":4,"featured_media":494009,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1497,125714],"tags":[86899],"yst_prominent_words":[],"ppma_author":[140543],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/d2r2ijn7njrktv.cloudfront.net\/apnlive\/uploads\/2023\/11\/13194222\/Capture-88.jpg","jetpack_sharing_enabled":true,"authors":[{"term_id":140543,"user_id":4,"is_guest":0,"slug":"apnnewsdesk","display_name":"APN Live","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/478eacb893eda88aa6ed8d99b005bf58?s=96&r=g"}],"_links":{"self":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/494006"}],"collection":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/comments?post=494006"}],"version-history":[{"count":0,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/494006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media\/494009"}],"wp:attachment":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media?parent=494006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/categories?post=494006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/tags?post=494006"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=494006"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/ppma_author?post=494006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}