Editor's Pick | Retail inflation eases to a four-month low

India’s retail inflation pace eased to a four-month low of 4.87% in October from a tad over 5% in September, with the rise in vegetables prices easing to 2.7% from 3.4%, though overall consumer food price inflation remained virtually unchanged at 6.6%, data released on Monday showed. While base effects from last October, when retail prices surged 6.8%, helped cool the headline inflation rate, some deceleration was also seen in prices of non-food items such as services, clothing and footwear as well as fuel and light. Aided by the LPG cylinder price cuts, fuel and light costs dropped 0.4% from last October’s levels. Inflation faced by rural consumers eased from 5.33% in September to 5.1%, but urban households saw a fractional increase in inflation at 4.65%. On a month-on-month basis, consumer prices were up 0.65%, while food prices were up 1.06%, with urban food prices rising 1.14%. The RBI is unlikely to lower interest rates anytime soon especially as the food price situation remains sticky. While there was some slight relief in the inflation rates for cereals (from 11% in September to 10.65% in October), meat and fish (from 4.1% to 3.3%), milk (down 6.44%) and spices, which remained elevated at 22.8% in October, these were offset by gains on other fronts. The pace of price rise in key protein sources like pulses and eggs accelerated sharply to 18.8% and 9.3%, respectively, inflation in fruits and sugar picked up pace to hit 9.34% and 5.5%. The RBI recently vowed to remain focused on price rise till it sustains around its 4% target, rather than be satisfied with inflation prints between the 4% mark and the upper tolerance threshold of 6%. As many as six States recorded inflation rates of 4% or lower, including Tamil Nadu, Madhya Pradesh, the erstwhile State of J&K, with Chhattisgarh (2.44%) and Delhi (2.5%) recording the lowest inflation in October. On the other hand, nine States recorded higher inflation than the 4.87% national average, with three of them crossing the 6% mark – Odisha (6.5%), Rajasthan (6.25%) and Haryana (6.02%). October’s inflation relief is expected to reverse course from this month, in line with the RBI’s projection of a 5.6% average for this quarter and 5.4% through 2023-24. The Hindu’s Editorials The growth dichotomy: On September’s Index of Industrial Production data Knockout blows: On the cricket World Cup entering its business end The Hindu’s Daily News Quiz Which institute experts is the Delhi Government consulting to control pollution in the city through cloud seeding? University of Hyderabad Anna University, Madras IIT Madras IIT, Kanpur To know the answer and to play the full quiz, click here. [logo] Editor's Pick 14 November 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [[Arrow]Open in browser]( [[Mail icon]More newsletters]( Retail inflation eases to a four-month low India’s [retail inflation pace eased to a four-month low of 4.87% in October]( from a [tad over 5% in September]( [with the rise in vegetables pricesÂ]( to 2.7% from 3.4%, though overall consumer food price inflation remained virtually unchanged at 6.6%, data released on Monday showed. While [base effects from last October, when retail prices surged 6.8%]( helped cool the headline inflation rate, some deceleration was also seen in prices of non-food items such as services, clothing and footwear as well as fuel and light. Aided by the LPG cylinder price cuts, fuel and light costs dropped 0.4% from last October’s levels. Inflation faced by[ rural consumers eased from 5.33% in September to 5.1%]( but urban households saw a fractional increase in inflation at 4.65%. On a month-on-month basis, consumer prices were up 0.65%, while food prices were up 1.06%, with urban food prices rising 1.14%. The RBI is unlikely to lower interest rates anytime soon especially as the food price situation remains sticky. While there was some slight relief in the inflation rates for cereals (from 11% in September to 10.65% in October), meat and fish (from 4.1% to 3.3%), milk (down 6.44%) and spices, which remained elevated at 22.8% in October, these were offset by gains on other fronts. The pace of price rise in key protein sources like pulses and eggs accelerated sharply to 18.8% and 9.3%, respectively, inflation in fruits and sugar picked up pace to hit 9.34% and 5.5%. The [RBI recently vowed to remain focused on price rise till it sustains around its 4% target]( rather than be satisfied with inflation prints between the 4% mark and the upper tolerance threshold of 6%. As many as six States recorded inflation rates of 4% or lower, including Tamil Nadu, Madhya Pradesh, the erstwhile State of J&K, with Chhattisgarh (2.44%) and Delhi (2.5%) recording the lowest inflation in October. On the other hand, nine States recorded higher inflation than the 4.87% national average, with three of them crossing the 6% mark – Odisha (6.5%), Rajasthan (6.25%) and Haryana (6.02%). October’s inflation relief is expected to reverse course from this month, in line with the[ RBI’s projection of a 5.6% average for this quarter and 5.4% through 2023-24.]( The Hindu’s Editorials [Arrow][The growth dichotomy: On September’s Index of Industrial Production data]( [Arrow][Knockout blows: On the cricket World Cup entering its business end]( The Hindu’s Daily News Quiz Which institute experts is the Delhi Government consulting to control pollution in the city through cloud seeding? - University of Hyderabad - Anna University, Madras - IIT Madras - IIT, Kanpur To know the answer and to play the full quiz, [click here.]( [Sign up for free]( Today’s Best Reads [[Remission of diabetes, desirable, but not essential] Remission of diabetes, desirable, but not essential]( [[Jaishankar meets newly appointed U.K. Foreign Secretary David Cameron] Jaishankar meets newly appointed U.K. Foreign Secretary David Cameron]( [[‘Breathing toxic air is equivalent to smoking at least 10 cigarettes a day’: AIIMS doctor] ‘Breathing toxic air is equivalent to smoking at least 10 cigarettes a day’: AIIMS doctor]( [[Why is South Asia the global hotspot of pollution? | Explained] Why is South Asia the global hotspot of pollution? | Explained]( Copyright @ 2023, THG PUBLISHING PVT LTD. 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