The Central Statistics Offices today presented the Consumer Price Index (CPI) inflation or retail inflation data for the month of October, 2018. It was logged at 3.31%, surpassing even what analysts had predicted. CPI Inflation for latest month was lower from 3.70% data in September 2018 and also 3.58% witnessed in corresponding period of previous year. 

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Surprisingly, Consumer Food Price Index (CFPI) was in negative at -0.86% this month compared to 0.51% in September 2018 and 1.90% in October 2017. 

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015.

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Under inflation, the Food and beverages inflation was at -0.14% this month, while Pan, tobacco and intoxicants stood at 6.13%.

Moreover, during October, clothing and footwear inflation was at 3.55%, housing inflation at 6.55%, fuel & light at 8.55%. 

Also miscellaneous category which includes items like household goods and services, health, transport and communication, recreation and amusement,  Education, personal care and effects etc witnessed inflation rate of 6.73%. 

On October CPI data, Shilan Shah, Senior India Economist at Capital Economics had made this prediction, “Consumer price inflation is likely to have eased in October following a renewed drop in food inflation. This may prove enough to keep the RBI on the side-lines in its meeting next month. But with core inflation likely to remain elevated for a while yet, we think the tightening cycle still has a little bit further to run.”

Shah had said, “Our forecast is that CPI inflation will have dropped back in October, to 3.6% y/y. The data ... will be the last that are available to the RBI before its next policy meeting.”