Retail inflation drops to 5.02% in September, lowest in 3 months

Retail inflation for September has fallen to RBI’s comfort zone of 6%. According to the latest government data, retail inflation in September eased to 5.02% from 6.83% in July.

The cooling of vegetable prices due to government’s supply-side measures, ban on rice export, LPG price cut, etc., are the factors that helped inflation.

Moreover, since February, RBI (Reserve Bank of India) has held the interest rate. The repo rate currently stays at 6.50%. In July, retail inflation had soared to 6.83% on high food prices. The price of vegetables, especially tomatoes, surged exorbitantly in September due to the shortage of monsoon.

Furthermore, India’s industrial production in August increased by 10.3%. Factory output measured based on the index of Industrial Production (IIP) had shrunk by 0.7% in August 2022.