Retail inflation spikes to 7.34% in September from 6.69% in August

Retail inflation spikes to 7.34% in September from 6.69% in August

According to Consumer Price Index (CPI), Retail Infaltion accelerated 7.34 per cent in the month of September as against 6.69 per cent in August mainly on account of rising food prices, government data released on Monday showed.

The inflation based on the Consumer Price Index (CPI) stood at 6.69 per cent in August. It was 3.99 per cent in September last year.

Inflation figures in September remained above the Reserve Bank of India’s (RBI’s) comfort level for the sixth consecutive month. The monetary policy committee (MPC) has been tasked by the government to tame retail inflation based on CPI at 4 per cent (+,-2 per cent).

In its statement, Ministry of Statistics and Programme Implementation said: “The Price data are collected from representative and selected 1114 urban markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of September 2020, NSO collected prices from 98.0% villages and 97.8% urban markets while the prices reported therein were 83.0% for rural and 87.9% for urban.”

In its monetary policy meet held last week, the RBI decided to keep the key policy repo rate unchanged at 4 per cent. RBI governor Shaktikanta Das said retail inflation is expected to remain close to the targeted level by the last quarter of the current fiscal year. However, it is likely to stay above the tolerance level at 6.8 per cent for the quarter ended September 2020, he added.

“Our projections indicate that inflation would ease closer to the target by Q4 of 2020-21,” he said.

The rate of price rise in the food basket was 10.68 per cent in September compared to 9.05 per cent in August, as per the data released by the National Statistical Office (NSO).

Read more: Defense Minister Blames Covid-19 Pandemic for India’s Economic Slowdown

Read related news : India’s GDP to shrink by 9.6% in 2020-21 estimates World bank

Read : Lucknow’s Iconic Chikan work industry hit hard by Pandemic

Leave a Reply

%d bloggers like this: