Retail inflation rises to 6.21% in Oct FY25

India’s retail inflation upgraded to 6.21 percent in October, up from 5.49 percent in September of the current fiscal year. According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), inflation in rural areas stood at 6.68 percent compared to 5.62 percent in urban regions.

Meanwhile, the food inflation rate for October 2024, based on the All India Consumer Food Price Index (CFPI), is provisionally reported at 10.87 percent.

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The corresponding inflation rate for rural and urban areas stood at 10.69 percent and 11.09 percent. According to MoSPI, high food inflation in October was mainly due to an increase in the inflation of vegetables, fruits oils, and fats. The data added that a decline in inflation was observed in the Pulses and products, Eggs, Sugar, and confectionery and spices subgroup.

India’s retail inflation remained above the central bank’s target in October. The Reserve Bank of India (RBI) aims to keep inflation within a range of 2 to 6 percent, with a medium-term target of 4 percent. 

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The spike in the inflation rate in October marked the first time that the print breached the RBI tolerance cap of 6 percent since August 2023. In September, the inflation print had surpassed RBI's 4 percent medium-term target for the first time since July to hit a 9-month high.

In October, fuel and light inflation stood at (-)1.61 percent, compared to a contraction of 1.31 percent in the previous month. Housing inflation quickened to 2.81 percent in October, up from 2.78 percent in September. Clothing and footwear inflation stood at 2.70 percent last month.

 

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