Retail inflation in October accelerates at 3.58% on rising food prices

The GST Council’s decision to cut tax rates on 177 items from 28% to 18% is expected to partially ease inflation going ahead

The GST Council’s decision to cut tax rates on 177 items from 28% to 18% is expected to partially ease inflation going ahead

A Reuters poll having over 30 economists projected consumer price inflation at 3.46% in October from a year ago, up from 3.28% in September.

Food and fuel prices pushed India's annual retail inflation rate higher in October, official data showed on Monday.

Vegetables prices witnessed a negative growth of 3.77 percent in October as compared with 4 percent in September.

The YoY CPI in urban areas ruled higher at 3.81 per cent, while in rural India it rose by 3.36 per cent.

The Consumer Price Index (CPI) or retail inflation stood at 3.58% in October this year in comparison with 4.2% in the same period last year, according to a data released by the government.

It was 4.2% in October a year ago. On a sequential basis, core inflation slowed to 0.47 percent from 0.68 percent in the prior month. It was (-) 22.51% in September.

"Luckily, core inflation - ex food and ex fuel has come in at 4.6 percent - unchanged from the previous month's level". The inflation for sugar and confectionery items increased and settled at 6.75 per cent. Spices saw some decline in price and settled at (-) 2.15 points.

Indicating the adverse macroeconomic impact of the rise in crude oil prices, global financial services company Nomura Holdings Inc. said every $10 rise per barrel would worsen India's retail inflation by 0.6-0.7% points and the current account balance by 0.4% of gross domestic product.

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