Food prices surge October retail inflation to 4.62%

New Delhi, Nov 15: India's October retail inflation boosted by a significant rise in food prices. The October retail inflation rose to 4.62 per cent from 3.99 per cent in September, according to recent official data.

The Consumer Price Index (CPI) of October 2019 was higher than the proportionate period of 2018 when retail inflation stood at 3.38 per cent, in a year-on-year (YoY) basis.

The National Statistical Office (NSO) data suggested, the Consumer Food Price Index (CFPI) inflated to 7.89 per cent from an expansion of 5.11 per cent in September 2019 and (-)0.86 per cent reported for the corresponding period 2018.

Remarkably, the data indicated that retail inflation level has broken the medium-term target for Consumer Price Index (CPI) inflation of 4 per cent. The target is set within a band of ± 2 per cent.

On a year-on-year (YoY) basis costs of vegetables, pulses, eggs, meat and fish have jumped the retail food inflation higher.

According to the recent data, the prices of vegetables rose by 26.10 per cent, pulses and its products increased by 11.72 per cent and meat and fish by 9.75 per cent.

In October 2019 the sub-category of food and beverages recorded a 6.93 per cent rise than October 2018.

In the month under review in the non-food categories- the fuel and light segment's inflation decreased by 2.02 per cent.

The ICRA's Principal Economist Aditi Nayar stated that viewing ahead, he expects the core-CPI inflation to move slowly and modestly from the level recorded in October 2019.