India's retail inflation in October accelerated to 6.21 per cent year-on-year, breaching the central bank's target range for the first time in over a year, as food prices remained stubbornly high, government data released on Tuesday showed.
The annual retail inflation was higher than the estimate of 5.81 per cent in a Reuters poll of 45 economists. In September, inflation stood at 5.49 per cent which was a nine-month high.
The Reserve Bank of India (RBI) is mandated to keep inflation in a range of 2-6 per cent, with a medium-term target of 4 per cent.
Annual inflation for food items, which account for nearly half of the consumption basket, rose to 10.87 per cent from 9.24 per cent a month ago.
India's retail inflation, which peaked at 7.79 per cent in April 2022, eased after the RBI's monetary policy committee raised rates and the government took measures to improve supplies.
However, rising food prices have reduced the purchasing power of lower-income households, affecting festive season sales this year.
Vegetable prices rose 42.18 per cent in October from a year earlier after rising 36 per cent in September.
The inflation rate for cereals was 6.94 per cent compared to 6.84 per cent in September, while that for pulses was 7.43 per cent against 9.89 per cent a month earlier.
The inflation rate for oil and fats was 9.51 per cent compared to 2.47 per cent in the previous month, mostly due to an increase in edible oil prices.
_20240501164720original_image_24.webp)
