Retail inflation inches up to 9-month high of 7.61% in October on hardening food prices
New Delhi | Jagran Business Desk: India's retail inflation on the basis of rising food prices climbed 7.61 per cent in the month of October, remaining above the comfort level of the Reserve Bank. It's a notch above the consumer price inflation 7.27 per cent recorded in the previous month.
As per the data, the Consumer Food Price Index (CFPI) rose to 11.07 per cent in October, up from 10.68 per cent in the previous month of September.
Consumer Price Index rises to 7.61% in October 2020 as compared to 7.27% in the previous month of September: Government of India— ANI (@ANI) November 12, 2020
Earlier, leading economists have pegged the range of consumer price inflation numbers for October at around 7-7.5 per cent. Besides, seasonal factors such as floods, industry watchers cited issues such as bottlenecks to transport, labour and working capital availability.
"CPI inflation is expected to come about 7.5 per cent with food inflation at around 9 per cent, as supply constraints continue to put pressure on vegetables and fruits prices," said M. Govinda Rao, Chief Economic Advisor, Brickwork Ratings. "There have been sharp increases in potato and onion prices due to floods in Maharashtra and northern Karnataka. Food inflation is likely to ease in the coming months with the arrival of new harvests coupled with the availability of a sufficient stock of pulses and foodgrains."
"Lower crude oil prices will also help ease fuel inflation." Last month, official data showed that India's sequential retail price inflation spiked in September to 7.34 per cent from 6.69 per cent in August. Though non-comparable, India had recorded a retail price inflation of over 3 per cent in the corresponding period of previous year.
Furthermore, data showed that India's consumer food price index during the month under review rose to 10.68 per cent against 9.05 per cent reported for August 2020. The CFPI readings measure changes in retail prices of food products.
"The continuing firmness in vegetable prices among other food items indicate continuing inflationary pressures, which are likely to be further aggravated by the festival demand," said Acuite Ratings & Research's Chief Analytical Officer Suman Chowdhury.
(with IANS inputs)
Posted By: Rakesh Kumar Jha