As per the government data, India's retail inflation rose to 5.49 per cent in September from 3.65 per cent in August this year. Key contributors to this spike in inflation may include rising food prices, increased demand, and other economic factors that are influencing the cost of living for Indian households.
The consumer price index-based inflation was 5.02 per cent in September 2023. The National Statistics Office data showed that inflation in the food basket rose to 9.24 per cent in September from 5.66 per cent in August and 6.62 per cent in the year-ago month. The Reserve Bank, which kept the key short-term lending rate unchanged earlier this month, has been tasked by the government to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side.
What is retail inflation?
Retail inflation refers to the rate at which the general price level of goods and services purchased by households increases over time. It is measured by the Consumer Price Index (CPI), which tracks changes in the price of a basket of essential items, including food, clothing, housing, fuel, and other services. The government regularly publishes retail inflation data, which is crucial for understanding the cost of living and economic stability. High retail inflation can erode purchasing power, leading to increased costs for consumers, while low inflation can indicate economic stagnation. The Reserve Bank of India (RBI) monitors retail inflation closely as it influences monetary policy decisions, including interest rates.
WPI inflation rises to 1.84 per cent in Sept
Meanwhile, the wholesale price inflation rose to 1.84 per cent in September as food items, especially vegetables, turned costlier, as per the government data released on Monday. The wholesale price index (WPI)-based inflation was 1.31 per cent in August. It was (-)0.07 per cent in September last year. As per the government data, inflation in food items shot up to 11.53 per cent last month against 3.11 per cent in August. This was led by 48.73 per cent inflation in vegetables as against (-)10.01 per cent in August.
Inflation in potato and onion continued to be high at 78.13 per cent and 78.82 per cent, respectively in September. Fuel and power category witnessed deflation of 4.05 per cent in September against a deflation of 0.67 per cent in August.
(With PTI inputs)
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