Retail inflation at a 14-month high in October

Retail inflation in India rose to 6.21% in October, up from 5.49% in September 2024, marking a sharp increase driven by high food prices. In comparison, retail inflation stood at 3.65% in August 2024 and 3.54% in July 2024.

Inflation in October climbed above the Reserve Bank of India's (RBI) 6% tolerance threshold, marking the first breach of this level in 14 months since August 2023.

In September, inflation had already surpassed the RBI’s medium-term target of 4% for the first time since July. A year ago, retail inflation in India stood at 4.87%, as per government data released on Tuesday.

Food inflation, accounting for nearly half of the Consumer Price Index (CPI) basket, climbed to 9.69% in October, an increase from 9.24% in September. Inflation in rural areas also rose to 6.68%, up from 5.87% in the previous month, while urban inflation increased to 5.62% from 5.05% in September.