Sept’23 CPI Inflation eases to 5.02% on fall in vegetable prices

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CPI Inflation has dropped for second month in a row to 5.02 per cent in September 2023. Rural inflation has fallen to 5.33 per cent. While, urban inflation has corrected to 4.65 per cent. September inflation print has corrected on the back of sharp fall in vegetable prices. Veggie prices had risen sharply during the monsoon season which registered six per cent lower rainfall on year-on-year basis. As a result of steps taken by the Government of India (GoI), September 2023, vegetables inflation fell to 3.39 per cent.

Food inflation too has fallen continuously for last three months and came in at 6.30 per cent in September 2023.

Apart from fall in vegetable and food inflation, September CPI Inflation eased a bit on the back of low oil and fats inflation, fuel and light inflation and transport and communication inflation.

September retail inflation has also fallen below the Reserve Bank of India’s (RBI) upper limit of tolerance band.

But pulses and products inflation continue to trouble the government. September pulses inflation has increased to 16.38 per cent. Pulses and products inflation has been quietly rising since March, 2023. It has continuously remained in double digits in last one year at least.

Highly spiced inflation: Spices inflation has also remained in double digits in last one year. In September 2023, CPI Inflation print for spices came at 23.06 per cent.

Cereals and products inflation too has been headache for government for quite a long time now. Cereals and products prices have continuously increased in double digits at least in last one year. September 2023 print for cereals and products inflation came in at 10.95 per cent.

Fruit inflation has been 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 four months. Fruit inflation rose for fourth straight month in September 2023 to 7.30 per cent.

Personal care and effects inflation too has also been elevated for past few months now. Personal care and effects inflation increased to 8.54 per cent in September 2023.

Bad news for non-vegetarians:

Meat and fish inflation has largely remained muted as the year 2023 has progressed. But off-late, meat and fish inflation has started showing signs of pick up since June 2023. It has now risen to fourth consecutive month in September 2023, to 4.11 per cent. Egg inflation also increased to 6.42 per cent in September 2023. While, September milk inflation increased to 6.89 per cent.