Inflation Surge: Food Prices Drive Retail Inflation Up

Retail inflation increased to 5.49% in September from 3.65% the previous month, largely due to rising food prices. The National Statistics Office reported food basket inflation at 9.24%. The Reserve Bank is mandated to maintain inflation at 4%, with a 2% margin.

Retail inflation in India saw a significant rise, reaching 5.49% in September from 3.65% in August, according to official data released on Monday. This spike is attributed mainly to escalating food prices.

Data from the consumer price index shows inflation hitting 5.02% in September 2023. The National Statistics Office reported that inflation in the food basket surged to 9.24% in September from 5.66% in August, compared to 6.62% in the same month last year.

The Reserve Bank of India, which opted to maintain the key short-term lending rate earlier this month, is tasked by the government to ensure that inflation remains at 4%, allowing for a 2% deviation either way.

(With inputs from agencies.)