Retail inflation eases to 4.2% in October
The RBI has set itself an inflation goal of 4% to be reached by 2021.
Retail inflation in India, or Consumer Price Index (CPI) cooled further in the month of October, at 4.20% as compared to 4.39% in the previous month. CPI, in October of last year, stood at 5%, said Ministry of Statistics and Programme Implementation (MOSPI) on Tuesday.
Rural CPI stood at 4.78% in October as against 5.04% in the previous month and 5.54% during the same period last year. Urban CPI stood at 3.54% in October as compared to 3.64% in September and 4.28% in October, 2015.
Consumer Food Price Index (CFPI) stood at 3.32% in October as compared to 3.96% in September and 5.25% in October last year, the Ministry said.
A Reuters poll of 22 economists predicted CPI to fall and this has met their expectations. Earlier in the day, wholesale inflation (WPI) numbers came in marginally lower at 3.39% in October as against 3.57% in September and -3.70% in October of last year.
This, coupled with the demonetisation drive, will increase the clamour for an interest rate cut from Reserve Bank of India (RBI) due next month.
The RBI has set itself an inflation goal of 4% to be reached by 2021.
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