Retail inflation returns to double-digit in Oct

Retail inflation returns to double-digit in Oct
Retail inflation, as measured by the Consumer Price Index (CPI), returned to double-digits again after a gap of seven months in October, following costlier vegetables and fruits, such as onions and tomatoes.

The data released by statistics office on Tuesday showed CPI rose an annual 10.09 per cent in October, rising from the previous month's 9.84 per cent. CPI has risen above the 10 per cent mark in both rural and urban areas.

The retail inflation in October was mainly driven by crazy prices of vegetables as they soared 45.67 per cent year-on-on year amidst supply problems. Egg, fish and meat rose 11.78 per cent in October, following the 12.84 per cent year-on-year surge in fruits.

The data showed that overall food and beverage inflation in October stood at 12.56 per cent year-on-year, signalling the height of pressure that has come on pocket of common man in a slowing economy.

The data will further cut the room for rate cut by Reserve Bank of India (RBI) which has always reiterated that inflation will remain its priority.

Dion Global Solutions Ltd.

Read more about: retail inflation, cpi, rbi
Story first published: Wednesday, November 13, 2013, 9:10 [IST]
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