Retail inflation eases to 5.02% in September from 6.83% in August, within RBI's comfort zone

Retail inflation eases to 3-month low of 5.02%: Retail inflation dropped to a three-month low of 5.02 per cent in September from  6.83 per cent in August, mainly due to easing food prices, as per the data release by the government on Thursday.

Notably, the inflation has come back to the Reserve Bank of India's comfort level of below 6 per cent after a gap of two months.

The inflation based on the consumer price index (CPI) was 6.83 per cent in August and 7.41 per cent in September 2022.

The previous low was in June this year when the reading stood at 4.87 per cent.

According to the data released by the National Statistical Office (NSO), the inflation in the food basket came down to 6.56 per cent in September from 9.94 per cent in the preceding month.

The RBI mainly factors in retail inflation while arriving at its bi-monthly monetary policy.

Commenting on the drop in inflation rate, Finance Minister Nirmala Sitharaman said that domestic disruptions along with global uncertainties may keep inflation at elevated levels in the coming months.

The ongoing Israel-Palestine conflict coupled with the Ukraine-Russia war are a double whammy for global economy. Domestic consumption and investment demand will continue to drive India's growth, Sitharaman said while speaking at the 108th Meeting of the Development Committee Plenary in Marrakech, Morocco.

The agenda for the meeting was "Ending Poverty on a Liveable Planet – Report to Governors on World Bank Evolution".

She said that the Indian government has already taken pre-emptive measures to restrain food inflation, which is likely to subside price pressure in the market soon.

(With Agency Inputs)