Lower food prices eased India’s September retail inflation on both a sequential and year-on-year basis.
Data furnished by the National Statistical Office showed that the Consumer Price Index (CPI) slipped to 4.35 per cent last month from 5.30 per cent in August 2021.
Even on YoY basis, the rise in last month’s retail inflation was slower than 7.27 per cent acceleration recorded for September 2020.
The macro-economic data assumes significance as it brings retail inflation mark well within the range of the Reserve Bank of India’s set target of 2-6 per cent for CPI inflation.
The declining retail inflation rate increases the chance of the RBI to further loosen up the monetary policy and maintain the accommodative stance.
Region wise, the CPI Urban fell to 4.57 per cent last month from 5.32 per cent in August, and the CPI Rural came down to 4.13 per cent from 5.28 per cent.
As per the NSO data, the rate of rise in Consumer Food Price Index decreased to 0.68 per cent last month from 3.11 per cent in August.
The CFPI readings measure the changes in retail prices of food products.