Quote on CPI By Mohit Ralhan, CEO, TIW Capital
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Below The Quote on CPI By Mohit Ralhan, CEO, TIW Capital
Retail inflation came in at 4.9% YoY in October, down from 5.0% in the previous month due to a decline in fuel inflation. Meanwhile, food inflation held stable at 6.6% YoY. While price of pulses increased 18.8% YoY, cereals witnessed 10.7% YoY inflation. This could be attributed to lower sowing in the kharif season due to erratic monsoon distribution. On the positive side, vegetable prices increased only 2.7% YoY. Vegetable prices were tha main reason earlier for a spike beyond RBI's CPI upper limit of 6%. Inflation for household services, which tends to be sticky, declined to 3.9% YoY from 4.3% YoY in September.
CPI has continued on a downward trajectory for third straight month. Core inflation has also trended down during this period. This lays the ground for RBI to remain on pause at its upcoming meetings. The central bank, though, will remain vigilant for any food or fuel price shocks.
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