Retail inflation eases to 6.77 percent in October

Retail inflation, based on the consumer price index (CPI), eases to a three-month low of 6.77 per cent in October this year. As per the Ministry of Statistics and Programme Implementation data released today, retail inflation came down mainly with ease in prices of Food & Beverages. The retail inflation for the month of September was 7.41 per cent.

In October, inflation in the food basket stood at 7.04 against 8.41 per cent in the previous month. During the reported period, fuel & light witnessed 9.93 percent inflation against 10.39 percent in the preceding month.

The government has mandated the central bank to maintain retail inflation at four per cent with a margin of two per cent on either side. 

Finance Ministry has said that the headline inflation rate based on the retail Consumer Price Index recorded a decline from 7.41 per cent in September to 6.77 per cent in October this year. In a series of tweets, the Ministry said, the significant decline in retail inflation is mainly due to a decrease in food price inflation.

The Ministry said, to soften the prices of edible oils and pulses, tariffs on imported items have been rationalised from time to time. The stock limits on edible oils also maintained, to avoid hoarding. It said, the Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices. The Ministry said, the impact of these measures is expected to be felt more significantly in the coming months.

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