India's retail inflation eases to 6.77% in October: Govt data

New Delhi: Retail Inflation in India has been dipped to 6.77 % in October from 7.41 % in September, according to the Government data. India’s Consumer Price inflation (CPI) rose to 5-month high of 7.41% in September. However, the CPI inflation still remains above the Reserve Bank of India’s (RBI) tolerance band of 6 per cent and this is the 10th consecutive time it is happening so.

Wholesale Price Index-based Inflation eases too

The wholesale price index-based (WPI) inflation has eased to a 19-month low of 8.39 per cent in October as against 10.7 per cent as reported in September this year. The WPI inflation was reported at a high of 12.41 per cent in August. Since April 2021, WPI inflation remained in double digits for 18 months with September print at 10.79 per cent. Inflation in October 2021 was 13.83 per cent. The Ministry of Commerce said that the decline in the rate of inflation in October, 2022 is primarily contributed by a fall in the price of mineral oils, basic metals and textiles.

"Decline in the rate of inflation in October 2022 is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc," 

RBI Governor remarked on Inflation

Earlier, Reserve Bank of India governor Shaktikanta Das had expressed hope that print inflation for October will be lower than 7% as the retail inflation for September had increased to 7.4% due to higher food and energy costs.

RBI had hiked its repo rate many times in the past few months to tame high-inflation and stopping Rupee slide. It has been hiked to 190 basis points to 5.90% since May.