Retail inflation falls to 4-month-low of 4.87% on LPG price cut, easing veggie prices

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Retail inflation in October 2023 has fallen to lowest levels in the last four months. The CPI based inflation print has fallen to 4.87 per cent in October 2023. Rural inflation has fallen to 5.12 per cent. While, urban inflation has corrected to 4.62 per cent. October inflation print has corrected on the back of slight easing of vegetable prices especially of perishable items barring onion. Plus, government’s decision to cut prices of 14.2 kg cooking gas cylinder has also paid off in keeping inflation within RBI’s upper limit of target band of six per cent.

Reduction of cooking gas prices and steps taken by the government to thwart petrol and diesel prices from rising has also aided in containment of fuel and light inflation, which, has now fallen to -0.39 per cent in October 2023. Fuel and light inflation has mostly remained low throughout the current calendar year.

While, due to steps taken by the government to contain veggie prices, vegetables inflation has fallen to 2.70 per cent.

Food inflation too has fallen continuously for last three months and came in at 6.24 per cent in October 2023.

Pulses, spices, cereals, fruits and egg inflation have  continued to rise in the country!

Fruit inflation was on the lower side in last one year. But off-late, it has started showing pick up from June 2023 onwards. Fruit inflation has risen continuously for last five months. Fruits inflation rose for the fifth straight month in October 2023 to 9.32 per cent.

Meat and fish inflation had largely remained muted as the year 2023 progressed. But, from June 2023 onwards it started showing signs of pickup. Although, after increasing continuously from June 2023 to September 2023 it fell to 3.27 per cent in October 2023.

While, egg inflation was also under control for most part of the current calendar year, but, it started showing signs of pickup from August, this year. It has now risen for the third consecutive month in October 2023 to 9.30 per cent.

Milk inflation on the other hand has continuously fallen for last two straight months. In October 2023, milk inflation print fell to 6.44 per cent.

But high pulses and products inflation continue to trouble the government. October pulses inflation has increased to worrisome levels of 18.79 per cent. Pulses and products inflation has been quietly rising since March, 2023. Despite government’s efforts to contain prices, pulses prices continue to rise in the country.

Cereals and products inflation too has been headache for government for quite a long time now. Although, cereals and products inflation has started to ease a bit since April this year. But still it has remained in double digits for most pat of the year. October 2023 print for cereals and products inflation came in at 10.65 per cent.

Spices inflation has also remained in double digits in last one year. In October 2023, CPI Inflation print for spices came at 22.76 per cent.

Personal care and effects inflation too has also been elevated for past few months now. Personal care and effects inflation came in at 7.84 per cent in October 2023.