In the last month, the retail inflation (CPI inflation) in the country has been at 4.35 percent. (Image: PTI)
In September, there has been news of relief on the retail inflation front. In the last month, the retail inflation (CPI inflation) in the country has been at 4.35 percent. It stood at 5.3 per cent in August. Whereas, in September 2020 it was at 7.3 percent.
According to the data released by the government on Tuesday, the reason for this is the fall in the inflation of food items. There is a steady decline in food inflation and in September it further declined to 0.68. It stood at 3.11 per cent in August.
In food prices, vegetables saw a growth of -22 per cent, while it was 1.01 per cent in the food and beverages segment. Inflation in fuel and light categories increased to 13.63 per cent.
The Reserve Bank of India (RBI), while deciding its bi-monthly monetary policy, mainly looks at the CPI based inflation. The government has asked the RBI to keep it at 4 per cent, with a tolerance band of 2 per cent on both sides.
Last week, RBI Governor Shaktikanta Das had said that overall, the CPI is coming in at the correct figure, with the correct base effect in the coming months. Inflation may drop substantially in the near term.
The central bank has projected retail inflation at 5.3 per cent for 2021-22. RBI has projected it to be 5.1 percent for the second quarter, 4.5 percent in the third quarter and 5.8 percent in the last quarter of the financial year.
The concern in this is only about the edible oil. Inflation of edible oil has increased by 34.19 percent on a year-on-year basis in September. It was 33 per cent in August.
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