Retail Inflation In October Remained Over 7% For Second Straight Month

India’s retail inflation remained above 7 per cent in October for a second straight month

India’s retail inflation remained above 7 per cent in October for a second straight month as vegetable prices stayed at elevated levels, worrying policymakers, who are struggling to pull Asia’s third largest economy from a deep slump. October’s annual retail inflation of 7.61 per cent was higher than the forecast of 7.30 per cent in a Reuters’ poll of economists. It stood at 7.27 per cent in September, government data showed on Thursday. Retail inflation has remained above 4 per cent, the middle-point of the Reserve Bank of India’s (RBI) target of 2 -6 per cent, for more than a year, giving it little room to cut rates.

India’s economy is likely to enter a technical recession for the first time in its history post independence in 1947, as the central bank forecast a contraction of 8.6 per cent in the July-September quarter. The country reported a 23.9 per cent contraction in the April-June quarter. Two successive quarters of contraction are described as a recession.

The main factor leading to higher inflation was elevated food inflation, which stood at 11.07 per cent in October compared with 10.68 per cent in the previous month. “High food inflation despite easing restrictions and improving mobility numbers indicates the problem is more complex and likely to persist in the near future,” said Anagha Deodhar, Economist at ICICI Securities.


Disruption from the coronavirus pandemic and excessive rainfall in states such as Maharashtra, Karnataka and Andhra Pradesh have damaged and delayed the harvesting of onions – a key ingredient in Indian kitchens – alongside other vegetables.

October’s core inflation was in the range of 5.5 per cent to 5.8 per cent, according to four analysts, compared with 5.7 per cent in September. Meanwhile, with coronavirus restrictions largely eased, September industrial output increased for the first time in six months at 0.2 per cent. For the April-September period it contracted 21.1 per cent.


Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link


Please enter your comment!
Please enter your name here


Priyanka Chopra on Billie Eilish’s magazine cover: ‘She looks unbelievable’

Global star Priyanka Chopra, who is still basking in the success of Netflix film The White Tiger, recently appeared...

Coronavirus | Most of India should remain locked down for 6-8...

There was a slight delay accepting the 10% (recommendation), but that did happen, says ICMR chief The head of the main Indian health agency responding...

B’luru woman returns from Kumbh; infects 33 others with COVID [details]

Indian strain of COVID spread to 44 countries already: WHO ...

Urgent steps to augment COVID treatment facilities in Thrissur

Urgent measures will be taken to increase the COVID treatment facilities in Thrissur district, Minister A.C. Moideen has said. He was speaking at a...

More Articles