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Retail Inflation Accelerates To 5-Month High Of 7.41% In September; All You Need To Know
Writer: Ronit Kumar Singh
A confident and reliable journalist who always desires to toss the unheard voices. I cover politics and governance extensively through stories.
India, 13 Oct 2022 6:20 AM GMT
Editor : Shiva Chaudhary |
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
Creatives : Ronit Kumar Singh
A confident and reliable journalist who always desires to toss the unheard voices. I cover politics and governance extensively through stories.
The retail inflation of India, measured by the Consumer Price Index (CPI), rose to 7.41 per cent in September, the highest since April 2022. The prices of vegetables, cereals, spices, and other products remain affected.
The retail inflation in the country, measured by the Consumer Price Index (CPI), spiked to a five-month high of 7.41 per cent in September. Similarly, the factory output in the country, measured through the Index of Industrial Production (IIP), has contracted (-) 0.08 per cent in August 2022, reveals data released on Wednesday (October 12) by the Ministry of Statistics and Programme Implementation (MoSPI).
The CPI is primarily factored in by the Reserve Bank of India (RBI) while they prepare their bi-monthly monetary policy. With this inflation, the CPI has crossed the upper margin of per cent set by the RBI for the ninth time.
Efforts To Maintain Inflation Rate
The government has also directed the central banks in the country to drop consistent efforts in maintaining the inflation rate at 4 per cent for five years ending March 2026.
The Monetary Policy Committee (MPC) hiked the repo rate by 50 basis points to 5.90 per cent on September 30. In the Financial year 2022, the MPC raised the interest rate by 190 basis points to check the rising inflation in the country. However, the inflation rate remains above the expected level even after efforts to bring it down, reported Indian Express.
Food Basket Sees Spike
According to reports, the Consumer Food Price Index (CFPI) also spiked month-on-month to 8.60 per cent in September from 7.62 per cent in August 2022. As a result, the retail price of vegetables increased by 18.05 per cent, spices witnessed a spike of 16.88 per cent, cereals gained 11.53 per cent, and prices of milk-related products increased by 7.13 per cent.
Apart from a spike in CPI and CFPI, the factory output in the country, measured by IIP, has contracted by (-) 0.8 per cent to 131.3 in August 2022. In contrast, the IIP gained 13 per cent in August 2021. The contraction results from poor manufacturing and mining pace in the country.
Earlier this month, the World Bank and the International Monetary Fund (IMF) also cut its gross domestic product (GDP) growth forecast for India to nearly 6.8 per cent for the financial year 2022-23. The main reasons for the economic slowdown, as highlighted by the financial institutions, are rising inflation, the cost-of-living crisis, and the slowdown in China.
Also Read: 'Worst To Come': IMF Cuts GDP Growth Forecast To 6.8% in FY22, Here's What It Means For India
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