Inflation in India Reduces

Inflation in India reduces despite global recession fear

by Subhechcha Ganguly

The wholesale price-based inflation rate has fallen to a 19-month low of 8.39%, while consumer (provisional) inflation has fallen to 6.77%, down from 7.41% last month in October, due to lower fuel and manufactured-goods prices.

The National Statistical Office, which is part of the Ministry of Statistics and Program Implementation, published CPI and CFPI data for rural, urban, and combined areas.

Wholesale inflation has fallen below 8% for the first time since March 2021, when it stood at 7.89%. From April 2021 to September 2022, the wholesale price index (WPI) print was in the double digits for 18 consecutive months.

Despite falling to a three-month low, the CPI remained above the Reserve Bank of India’s (RBI) upper range of 6% for the tenth month in a row. The government has directed the central bank to keep retail inflation at 4% for a five-year term ending March 2026, with a 2% buffer on either side.

According to the most recent data, food basket inflation, or the Consumer Food Price Index, slowed to 7.01% in October this year, down from 8.60% in September.

Last month, the gasoline and power category fell to 23.17% from 32.61% in September. LPG prices fell to 4.82% from 8.45% a month ago, HSD prices fell to 43.05% from 65.96%, and petrol prices fell to 25.02% from 40.38%.The manufactured items section fell to 4.42% in October, down from 6.34% the previous month.

During the month of October 2022, NSO gathered prices from 99.8% of villages and 98.2% of urban markets, with 89.5% of rural and 91.8% of urban prices recorded.After a one-and-a-half-year hiatus, WPI inflation has returned to single digits, providing some relief to the RBI, which has been fighting to keep price rises under control.

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