Retail inflation drops to 3-month low of 6.77% in Oct amid easing food prices

Retail inflation dropped to a three-month low of 6.77% in October, from 7.41% in the preceding month, mainly due to easing prices in the food basket, though it remained above Reserve Bank’s comfort level for the 10th month in a row, according to the government data released on Monday (November 14).

The Consumer Price Index (CPI) based retail inflation has remained above the 6% target since January this year.

Also read: WPI dips to 8.39% after a 19-month gap

As per the latest data released by the National Statistical Office (NSO), the inflation in the food basket was 7.01% in October as against 8.6% in September.

The retail inflation, which the RBI factors in while deciding its periodic monetary policy, was 4.48% in October 2021.

Also read: Retail inflation rises to 7.41% in September; Congress attacks PM, FM

As the RBI failed to ensure inflation remains at 4% with a margin of 2% on either side for three consecutive quarters, it has sent a report to the government detailing the reasons for the failure and steps it is taking to bring CPI in the target range.

Another set of data released earlier in the day revealed that the wholesale price index (WPI)-based inflation dipped to a 19-month low of 8.39% in October on easing prices of food, fuel and manufactured items.