A sharp spike in food prices and an unfavourable base effect bumped India’s retail inflation to its highest level in 2024 in the month of September. Data released by the National Statistical Office (NSO) on Monday showed that India’s consumer price index (CPI)-based headline retail inflation figure increased sharply to 5.49 per cent in September from 3.65 per cent in August.
Earlier in December 2023, retail inflation had stood at 5.69 per cent.
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Data showed that food inflation rose sharply to 9.2 per cent in September from 5.66 per cent in the preceding month. This sharp uptick was led by an acceleration in the prices of fruits (7.65 per cent) and vegetables (35.99 per cent). Meanwhile, the prices of cereals (6.84 per cent) and protein-rich items like eggs (6.31 per cent) and meat and fish (2.66 per cent) decelerated during the month.
Last week, in its customary post-monetary policy committee (MPC) statement, Reserve Bank of India (RBI) governor Shaktikanta Das said that retail inflation in September was expected to see a big jump due to unfavourable base effects and a pick-up in food price momentum, caused by the lingering effects of a shortfall in the production of onion, potato, and chana dal (gram) in 2023-24, among other factors.
Earlier in the day, data released by the Ministry of Commerce and Industry showed that wholesale price index (WPI)-based factory gate inflation also saw a slight increase in September to 1.84 per cent from 1.31 per cent in August, primarily on the back of a sharp spike in the prices of food items, even as other major sub-indices like manufactured products and fuel saw a decline in prices during the month.
First Published: Oct 14 2024 | 5:53 PM IST
