In October, India's retail inflation rate, measured by the Consumer Price Index (CPI), increased to 6.21 percent, marking the highest level in 14 months. Government data released on Tuesday show an increase from September's inflation rate of 5.49 percent, mainly driven by higher food and beverage prices. In October 2023, a year earlier, the inflation rate was lower at 4.87 percent. This is the first time in 14 months that retail inflation has exceeded the Reserve Bank of India's (RBI) tolerance limit of 6 percent.
According to the National Statistics Office, food inflation increased sharply to 10.87 percent in October, up from 9.24 percent in September and 6.61 percent a year ago in October 2023.
In October, rural areas experienced higher retail inflation at 6.68 percent compared to 5.62 percent in urban areas, indicating that the rural population is more affected by inflation than the urban population.
Among food items, vegetable prices saw the highest inflation in October at 42.18 percent, up from 35.99 percent in September. Additionally, inflation for oils and fats increased by 9.51 percent, fruits by 8.43 percent, and pulses by 7.43 percent.