New Delhi, November 14
India’s retail inflation fell to 8.39 percent in October, against 10.70 percent recorded in September 2022.
Notably, the wholesale price index (WPI)-based inflation had been in double digits for 18 months in a row till September.
According to the statement from the ministry of commerce and industry, the decline in the rate of inflation in October is primarily contributed by a fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals, etc.
The month-over-month change in the wholesale priced index (WPI) — inflation — for October 2022 stood at 0.26 percent, against September 2022.
The index for major group primary articles increased by 2.72 percent to 181 in October from 176.2 for the month of September. Prices of crude petroleum & natural gas went up 17.48 percent and food articles grew 2.03 percent in October as compared to September.
Prices of non-food articles declined 0.53 per cent and minerals dropped 3.78 per cent in October, 2022 as compared to September 2022.
In fuel and power group, the index declined by 1.65 per cent to 155.2 in October 2022 from 157.8 in September. Prices of coal rose 2.60 per cent in October 2022, against September 2022. Prices of mineral oils dropped 3.09 per cent in October as compared to September 2022. Prices of electricity remain unchanged.
India’s retail inflation surged to 7.41 per cent in September, remaining above the mandated range of 2-6 per cent for the third consecutive quarter.
Under the flexible inflation targeting framework introduced in 2016, the RBI is deemed to have failed in managing price rises if the consumer price index (CPI)-based inflation is outside the 2-6 per cent range for three quarters in a row.
Against this backdrop, an out-of-turn meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India was held on November 3 to discuss and draft the report to be sent to the central government for having failed in maintaining the inflation mandate.