“India’s Retail Inflation Dips to 4.87% in October, RBI Remains Vigilant in the Fight Against Inflation”
Retail inflation in India declines to 4.87% in October, down from 5.02% in September, according to government data. RBI Governor Shaktikanta Das underscores the ongoing fight against inflation, aiming for a 4% target, while food inflation sees a marginal increase. The central bank’s commitment aligns with the government’s directive to maintain CPI inflation at 4%.
According to government data released on Monday, retail inflation in India witnessed a decline to 4.87% in October, down from 5.02% in September. The Consumer Price Index-based inflation, a key metric for gauging retail inflation, had reached a three-month low of 5.02% the previous month.
The Reserve Bank of India’s Monetary Policy Committee (MPC), in its October meeting, had projected a further moderation in CPI inflation to 5.4% for the fiscal year 2023-24, following a rate of 6.7% in 2022-23. RBI Governor Shaktikanta Das emphasized that the fight against inflation is ongoing, reiterating the central bank’s commitment to maintaining inflation at 4%, with a margin of 2% on either side. This is in line with the government’s directive to the RBI to ensure that Consumer Price Index (CPI) inflation remains at 4%.
In the wake of the latest data, Governor Das stated, “The fight against inflation is not over yet,” highlighting the central bank’s focus on keeping inflation within the desired range. The government entrusts the RBI to factor in retail inflation while formulating its bi-monthly monetary policy.
Food inflation, a significant component of the consumer price basket, saw a slight uptick in October, reaching 6.61%, compared to 6.56% in September, as reported by the government. The dynamics of food prices play a crucial role in overall inflation trends.
As India navigates economic challenges, the central bank remains vigilant in its efforts to strike a balance between economic growth and price stability. The continuous monitoring of inflation figures reflects the commitment to maintaining a stable economic environment.
Sources By Agencies
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