India's October retail inflation rises to 3.5%

India's October retail inflation rises to 3.5%

Andrew Cummings
November 13, 2017

Consumer price index rose to 3.58 percent year-on-year in October from September's 3.28 percent.

The overall food prices, as gauged by the Consumer Food Price Index (CFPI), rose to 1.90 per cent during the month under review from 1.25 per cent in September 2017.

Consumer food price inflation, a metric to gauge changes in monthly kitchen costs, saw a jump, with prices rising 1.90 percent in October from 1.25 percent in September.

The numbers are mainly driven by higher prices of food and fuel.

Meanwhile, core inflation eased slightly in the month to 4.55 percent in October from September's 4.61 percent. Recently, the Goods and Services Tax (GST) Council, even after pruning the 28 per cent slab, made a decision to keep the above items in the top slab.

The MPC in August cut its key policy rate by 25 basis points to 6%, the lowest since November 2010. A basis point is a hundredth of a percentage point.

It was 4.2% in October a year ago. Analysts polled by Reuters had expected October's retail inflation at 3.46 percent, up from 3.28 percent in September.

Crude oil price of the Indian basket stood at $62.66 per barrel on Monday.

Inflation in pulses continued to decline and settled at (-) 23.13%.

"Additionally, the HRA revision at the state level may have a similar impact as that at the central government level, on the housing inflation", she added.

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