New Delhi: Inflation declined marginally to 7.45 percent in October even
though prices of food items like rice, wheat pulses and potato showed a
rise.Inflation, as measured by the Wholesale Price Index (WPI),
was 7.81 percent in September. In October last year, however, it stood
at 9.87 percent.
Food inflation, as a category, declined to 6.62 percent during the month, from 7.86 percent in the previous month. Food articles have 14.3 percent share in the WPI basket.While wheat turned expensive by 19.78 percent from 18.63 percent in September, cereals became dearer by 14.35 percent from 14.18 percent during the period. On year-on-year basis, potatoes were costlier by 49.13 percent, pulses by 20 percent and rice by 11.40 percent.
However, vegetables prices declined by 7.45 percent, while onion was down by 8.99 percent on an annual basis during the reported month.At the same time, prices of bajra declined by 6 percent and fish-marine by 5 percent.For the fuel and power category, inflation moderated to 11.71 percent from 11.88 percent. However, diesel prices increased by 14.60 percent during the month.
In the manufactured items category, prices of cotton textiles, man-made textile, iron and steel paper and paper products, rubber and plastic products rose relatively at a lower pace compared to the same month of the previous year.
The rate of price rise in the manufactured products was 5.95 percent in October, as against 6.26 percent in the previous month.
Inflation for August was revised upwards to 8.01 percent from 7.55 percent as per provisional estimates.
Retail inflation in October moved closer to the double digit mark at 9.75 percent.This was on account of rising prices of food items such as sugar, pulses and vegetables as well as clothings. Consumer Price Index (CPI) was 9.73 percent in September.
Concerned over the persistent inflation, the Reserve Bank had last month in its half-yearly monetary policy review kept benchmark interest rate unchanged. However, RBI reduced cash reserve ratio by 0.25 percent to infuse additional liquidity of Rs 17,500 crore into the financial system.Accordingly, the CRR or the portion of deposits banks have to park with the RBI now stands at 4.25 percent, while the repo rate, at which RBI lends to the lenders, has been retained at 8 percent.
The reverse repo, at which RBI absorbs excess liquidity through borrowings from banks, remains at 7 percent.
Food inflation, as a category, declined to 6.62 percent during the month, from 7.86 percent in the previous month. Food articles have 14.3 percent share in the WPI basket.While wheat turned expensive by 19.78 percent from 18.63 percent in September, cereals became dearer by 14.35 percent from 14.18 percent during the period. On year-on-year basis, potatoes were costlier by 49.13 percent, pulses by 20 percent and rice by 11.40 percent.
However, vegetables prices declined by 7.45 percent, while onion was down by 8.99 percent on an annual basis during the reported month.At the same time, prices of bajra declined by 6 percent and fish-marine by 5 percent.For the fuel and power category, inflation moderated to 11.71 percent from 11.88 percent. However, diesel prices increased by 14.60 percent during the month.
In the manufactured items category, prices of cotton textiles, man-made textile, iron and steel paper and paper products, rubber and plastic products rose relatively at a lower pace compared to the same month of the previous year.
The rate of price rise in the manufactured products was 5.95 percent in October, as against 6.26 percent in the previous month.
Inflation for August was revised upwards to 8.01 percent from 7.55 percent as per provisional estimates.
Retail inflation in October moved closer to the double digit mark at 9.75 percent.This was on account of rising prices of food items such as sugar, pulses and vegetables as well as clothings. Consumer Price Index (CPI) was 9.73 percent in September.
Concerned over the persistent inflation, the Reserve Bank had last month in its half-yearly monetary policy review kept benchmark interest rate unchanged. However, RBI reduced cash reserve ratio by 0.25 percent to infuse additional liquidity of Rs 17,500 crore into the financial system.Accordingly, the CRR or the portion of deposits banks have to park with the RBI now stands at 4.25 percent, while the repo rate, at which RBI lends to the lenders, has been retained at 8 percent.
The reverse repo, at which RBI absorbs excess liquidity through borrowings from banks, remains at 7 percent.
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