New Delhi, Nov 13 : India’s October retail inflation inched-up on sequential basis on the back of a marginal rise in food prices along with high fuel and commodity prices.New Delhi, November 13, : , India’s October retail inflation increased sequentially due to a slight rise in food and fuel prices. Accordingly, data furnished by the National Statistical Office showed that Consumer Price Index (CPI) inched-up to 4.48 per cent last month from 4.35 per cent in September 2021.According to data from the National Statistical Office, Consumer Price Index (CPI), increased to 4.48 percent last month from 4.35 percent in September 2021.
However, on YoY basis, the rise in last month’s retail inflation was slower than the 7.61 per cent rise recorded for October 2020.On a YoY basis, however, the retail inflation increase in the last month was slower than the 7.61 percent rise for October 2020.
The macro-economic data assumes significance as retail inflation remained we ll within the range of the Reserve Bank of India’s set target of 2-6 per cent for CPI inflation.As retail inflation remains within the target range of 2-6 percent for CPI inflation, the macro-economic data is of great importance.
Region-wise, the CPI Urban rose to 5.04 per cent last month from 4.57 per cent in September and the CPI Rural came down to 4.07 per cent from 4.13 per cent.Region-wise, CPI Urban rose from 4.57 % in September to 5.04 % last month.CPI Rural fell to 4.07 % from 4.13 %.
As per the NSO data, the rate of rise in Consumer Food Price Index increased to 0.85 per cent last month from 0.68 per cent in September.According to NSO data, Consumer Food Price Index rose 0.85 percent last month, compared to 0.68% in September.
The CFPI readings measure the changes in retail prices of food products.
The CFPI readings indicate the change in retail prices for food products.
In terms of CPI YoY inflation rate, pulses and products’ prices jumped by 5.42 per cent in October 2021.CPI YoY inflation rate: Pulses and product prices rose by 5.42 percent in October 2021.
Besides, meat and fish prices rose by 7.12 per cent, however, eggs became cheaper by 1.38 per cent, nevertheless, the overall price of food and beverages category was up 1.82 per cent and oils and fats prices rose 33.50 per cent.Additionally, meat and fish prices increased by 7.12 percent, but eggs were cheaper by 1.38 percent.However, overall food and beverage prices were up 1.82 percentage and oil and fat prices rose 33.50 percent.
On the other hand, vegetable prices declined by 19.43 per cent.However, vegetable prices fell by 19.43 percent.
Furthermore, as per the official data, the inflation rate for fuel and light was at 14.35 per cent.According to official data, the fuel and light inflation rate was 14.35 percent.
In addition, sub-group of clothing and footwear showed a price acceleration of 7.53 per cent.A sub-group of footwear and clothing also saw a price acceleration at 7.53 percent.
“Despite base effect, still-high fuel costs, input cost pressures and season al turn in some food prices in coming months etc.”Despite the base effect, still high fuel costs, input cost pressures, and seasonal al turn in some foods prices in the coming months, etc.could even see inflation rise towards more than 6.2 per cent later in the fiscal year,” said Madhavi Arora, Lead Economist, Emkay Global Financial Services.”Inflation could rise to more than 6.2% later in the fiscal years,” stated Madhavi Arora (Lead Economist Emkay Global Financial Service).
“We revise our forecast by 25bps to 5.5 per cent for FY22, as we reckon supply-side bottlenecks, higher imported commodity inflation and high pump prices would pose a countering upside pressure on inflation.”.”We revise the forecast by 25bps to 5.5% for FY22 as supply-side bottlenecks and higher pump prices would counter any upward pressure on inflation.
According to Aditi Nayar, Chief Economist, ICRA: “The uptick in the YoY CPI inflation in October 2021 relative to the previous month, while mild, was pretty broad-based, with the hardening in the inflation for clothing and footwear, and miscellaneous items suggesting that reviving demand is nudging producers in some sectors to pass through the input price pressures, resulting in a pickup in the core inflation to 5.8 per cent in that month.”.Aditi Nayar is the Chief Economist at ICRA.She stated that the YoY CPI inflation increase in October 2021 relative the previous month was mild.
The hardening of the inflation for clothing, footwear, and miscellaneous goods suggests that producers are being pushed by reviving consumer demand to move through the input price pressures.This has resulted in a rise in core inflation to 5.8 percent in that month #Indias #retail #increases #higher #input #Delhi
.
