India’s annual retail inflation decreases to 6.77%

In October, India’s annual retail inflation decreased to 6.77%, a three-month low, thanks to slower increases in food prices and a larger base effect.
The data (INCPIY=ECI) exceeded the tolerance level set by the central bank and was higher than the 6.73% expectation made by economists.
Retail food inflation increased by 1.08%, which is indicative of economic inflationary pressures.
Due in part to a decline in commodity prices, India’s annual wholesale price-based inflation fell in October to 8.39% year-over-year, the lowest level since March 2021.
According to three economists’ estimations, the core inflation rate increased from 6.07% in September to 6.3% last month after excluding the volatile food and energy components.
Government actions, such as restrictions on the export of wheat and rice, are anticipated to have an influence.
Some economists said it could take up to two years before the inflation rate eased to 4% — the Reserve Bank of India’s (RBI) target. India’s annual wholesale price-based inflation (WPI) eased in October to 8.39% year-on-year, the lowest since March 2021, helped by a fall in commodity prices.
Many private economists have also cut growth projections for India for the current and next calendar year due to higher inflation, high interest rates, and slowing global growth.

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