India’s Retail Inflation Eases to 4.35% in September: Government Data

The Consumer Price Index was reported to be 7.27 percent in September 2020.

Retail inflation declined to 4.35 percent in September, with the Consumer Price Index-based (CPI) standing at 5.30 percent in the month of August.

(Photo: Reuters)

According to data released by the Government of India on Tuesday, 12 October, retail inflation declined to 4.35 percent in September, with the Consumer Price Index-based (CPI) standing at 5.30 percent in the month of August.

The CPI inflation rate was reported to be 7.27 percent in September 2020.

The National Statistical Office (NSO) indicated that inflation in food basket dipped to 0.68 percent in September 2021, a decrease from the 3.11 percent recorded in the previous month.

The government has tasked the Reserve Bank of India (RBI) to maintain the CPI at 4 percent, with a tolerance band of 2 percent on either side, PTI reported.

RBI Governor Shaktikanta Das had stated last week that coming months could see a softening of inflation in the coming term if the base effects were favourable, as the CPI headline momentum is witnessing moderation.

RBI reportedly projected CPI inflation at 5.3 percent for 2021-22: 5.1 percent in second quarter, 4.5 percent in third; 5.8 percent in last quarter of the fiscal year, with risks broadly balanced.

(With inputs from PTI)