The Consumer Price Index (CPI) based inflation reached a 14-month high of 6.21 per cent in October, up from 5.49 per cent in August, indicating persistent price pressures across sectors, the Ministry of Statistics and Programme Implementation (MoSPI) said on Tuesday. The data shows higher inflation in rural areas at 6.68 per cent compared to 5.62 per cent in urban regions.
The Reserve Bank of India (RBI) aims to keep inflation within a range of 2-6 per cent, with a medium-term target of 4 per cent.
Food inflation remains high in October
The Consumer Food Price Index (CFPI) recorded a significant year-on-year (Y-o-Y) inflation rate of 10.87 per cent, driven largely by rising prices of vegetables, fruits, oils and fats. In September, food inflation stood at 9.24 per cent.
Rural areas experienced a CFPI inflation rate of 10.69 per cent, while urban regions saw a slightly higher rate of 11.09 per cent.
Despite some relief in items like pulses, eggs, sugar, and spices, overall food inflation remains elevated.
Rise in housing and electricity costs
Housing inflation also rose, with October 2024 recording a rate of 2.81 per cent, slightly up from September’s 2.72 per cent. The housing index is calculated only for urban areas.
Electricity costs continued their upward trend, with the electricity index rising to 162.5 and a Y-o-Y inflation rate of 5.45 per cent in October, compared to 5.39 per cent in September.
India’s retail inflation peaked at 7.79 per cent in April 2022 but eased after the RBI’s monetary policy committee raised rates, and the government took measures to improve supplies. However, rising food prices have reduced the purchasing power of lower-income households, particularly affecting festive season sales this year.
September industrial output shows 3.1 per cent growth
India’s industrial output rose 3.1 per cent year-on-year in September, driven by a rebound in manufacturing activity.
In August, industrial output had contracted for the first time in nearly two years.
Manufacturing output climbed 3.9 per cent year-on-year in September, while electricity generation grew 0.5 per cent and mining activity increased 0.2 per cent, the data showed.
In comparison, the sectors had grown by 5.1 per cent, 9.9 per cent, and 11.5 per cent, respectively, a year ago.
In the April-September period, industrial output rose by 4 per cent, compared to the revised growth of 6.2 per cent a year earlier.(Agency)
