Retail inflation drops to 5.02% in September, lowest in 3 months

Subhomoy Bhattacharjee, Economic Analyst has said that India’s retail inflation eased from 6.83% in August to 5.02% in September. He added that while 5% is reached, the task downhill to 4% will remain a challenge in the near future. 

India’s retail inflation rate fell below the Reserve Bank of India’s upper tolerance level of 6% for the first time in 3 months in September, while industrial production growth accelerated to a 14-month high in August, providing some relief to the



government on the macroeconomic front ahead of the festival season. 

Despite a positive reduction in inflation, the Consumer Price Index (CPI) continued to remain above 4%, a target that the country's central bank has signaled would be key before easing rates. One of the major contributors in the consumers price basket, food inflation, also lowered last month. Food inflation rose by 6.56% in September against 9.94% in August.