Retail Inflation Eases To 6.77% In October

The Consumer Price Index-based (CPI) inflation or retail inflation for the month of October 2022 came in at 6.77%, down from 7.41% in September, according to data released by the National Statistical Office (NSO) on November 14, 2022.

Earlier, a poll of 47 economists by Reuters suggested CPI to slow from 7.41% in September to a likely 6.73% for October.

Meanwhile, the figure has remained above Reserve Bank of India's tolerance band of 2-6 per cent for the 10th successive month.

According to Nish Bhatt, Founder & CEO, Millwood Kane International, "The October CPI inflation has cooled down to a 3-month low. After two months of above 7% inflation, the CPI is finally below the 7% mark but still stays above the RBI's mandate of 6%. The core inflation too remains sticky at 6%. The WPI data released earlier today showed a fall below the 10% mark. This is in line with the central bank guidance for the CPI data."

The effects of lower crude and food prices have started reflecting in vegetable and food price inflation. This will be the last inflation data point before the RBI meets next month to decide on its monetary policy. This will likely have some positive impact on the event. Inflation cooling off broadly indicates the RBI halting its rate hike cycle, with a long pause, added Nish Bhatt.

Earlier this month in November, RBI Governor Shaktikanta Das expected CPI inflation to remain below 7%.