Retail inflation shoots back to nine-month high of 5.5%

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| Photo Credit: Sushil Kumar Verma

India’s retail inflation shot back to a nine-month high of 5.5% in September, from 3.65% in August, thanks to a resurgence in food price rise to 9.24% after two months under the 6% mark.

For rural consumers, inflation neared the 6% mark at 5.87% while their urban counterparts faced a price rise of 5.05%. Rural India, however, faced a relatively milder food inflation of 9.1% compared with a 9.6% rise faced by urban consumers.

“It is likely that the increase in inflation rate for the month of September, 2024 is due to high base effect and weather conditions,” the National Statistical Office said, adding that a “significant decline in inflation is observed in Pulses and products, Spices, Meat & fish and Sugar & confectionery”.

On a sequential basis, the Consumer Price Index (CPI) was up 0.62%, while the Consumer Food Price Index was up 1.2% from August levels, with urban India seeing a sharper month-of-month uptick of 1.35% in food bills.

Vegetables inflation surged from 10.7% in August to 36% in September, while fruit price rise gained momentum to hit 7.65% from 6.5% a month earlier. Pulses prices rose 9.81%, retreating from a 10%-plus inflation pace for the first time in 16 months. Cereals and eggs inflation eased marginally to 6.8% and 6.3%, respectively.

Beyond food, households saw a sharp uptick of 9% in prices for personal care and effects in September. Prices for this category had risen 8.4% in July and eased a tad to 7.9% in August.