Retail inflation jumps to 14-month high of 3.99% in September

15 Oct 2019 Evaluate

Rising for the second straight month, the Consumer Price Index (CPI) based inflation jumped to a 14-month high of 3.99% in September as compared to 3.28% in August and 3.70% in the September last year, due to costlier vegetables and pulses. The previous high was 4.17% in July 2018. Though, it still remained within the Reserve Bank of India’s (RBI’s) target range of 4%, with deviation of 2% on either side. Retail food prices, which make up almost half of the inflation basket, increased 5.11% in September from 0.51% in the same month last year, compared with a 2.99% rise in August.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base 2012=100 for September 2019, stood at 3.24%, 4.78% and 3.99%, respectively, compared to 3.27%, 4.31% and 3.70%, respectively in September 2018. The index value of CPI for combined stood at 145.8. The data also showed that consumer food price index (CFPI) for all India Rural and Urban for September 2019 stood at 3.22% and 8.76%, respectively, compared to 0.87% and -0.22%, respectively in September 2018. The index value of CFPI for combined stood at 146.0 for the month of September.

Within food items, inflation for vegetables shot up to 15.40% during the month from 6.9% in previous month. Besides, price rise in pulses and meat and fish baskets for the reported month was 8.40% and 10.29% higher, respectively over August. However, there was a decline in inflation in the fuel and light segment (-2.18%). Also, housing saw inflation slowing to 4.75% in September from 4.84% in August. Inflation in paan, tobacco and other intoxicants eased in September to 4.59% from 5% in the previous month.