Signs of relief: Retail inflation at record low level in 3 months - check details

India’s retail inflation, measured by the Consumer Price Index (CPI), recorded a three-month low of 6.77 per cent in the month of October, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed Monday. 

The headline inflation rate based on the retail Consumer Price Index (CPI) recorded a decline from 7.41 per cent in September 2022 to 6.77 per cent in October 2022, tweeted the ministry.

The headline inflation rate based on the retail Consumer Price Index #CPI recorded a decline from 7.41 per cent in September 2022 to 6.77 per cent in October 2022. The significant decline in retail inflation is mainly due to a decrease in food price inflation. (1/5)

— Ministry of Finance (@FinMinIndia) November 14, 2022

The soaring inflation has been a concern for the masses since March 2022. Despite the fall in wholesale inflation, retail inflation continued to be high till the last month, posing a constant concern for the common men, which were struggling to make ends meet.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said on Saturday that the next inflation print for October will come down below 7 per cent. “We expect the October number which will be released on Monday to be lower than 7 per cent. Inflation is a matter of concern with which we are now dealing and dealing effectively,” stated Das at the Hindustan Times Leadership Summit 2022.
Consumer Food Price Inflation moderated significantly in October 2022, to 7.01 per cent, which is lower than the 8.6 per cent recorded in September 2022.

“The decline in prices of vegetables, fruits, pulses, and oils & fats contributed significantly to the reduction in containing food price inflation,” stated the Ministry in its tweet.

India’s annual wholesale price-based inflation (WPI) also eased in October to 8.39 per cent year-on-year, recording the lowest since March 2021, helped by a fall in commodity prices, government data showed.

The RBI has been questioned for the failure to keep the retail inflation below the 6 percent mandate. Thus, the Monetary Policy Committee (MPC) of the central bank earlier this month had a special off-cycle meeting to draft a report to be sent to the government addressing their failure despite repeated rate hikes since April.

Various geo-political reasons like the Russia-Ukraine war, rise in crude oil prices, falling value of the rupee against the dollar, and repeated rate hikes by the US Fed led to soaring inflation in India. 

“To soften the prices of edible oils & pulses, tariffs on imported items have been rationalized from time to time & stock limits on edible oils maintained, to avoid hoarding. Inflation in 'oils and fats' and 'pulses & products' moderated to -2.15 per cent and 2.78 per cent, respectively,” the ministry also said in a tweet.