Vegetable Price Surge Drives Inflation to Nine-Month High

Soaring vegetable prices have pushed retail inflation to a nine-month high of 5.49% in September. The increase is attributed to high base effects and adverse weather. The inflation rate in the food basket rose to 9.24%, with rural areas seeing higher rates than urban areas as per the NSO.

Retail inflation in India surged to a nine-month high of 5.49% in September, driven primarily by a sharp increase in vegetable prices, according to recent government data.

The Consumer Price Index (CPI) indicated a rise from 3.65% in August to 5.02% in September, marking the highest level since December 2023.

The Reserve Bank of India is tasked with keeping inflation at 4%, while challenges in food production continue to pressure prices. Rural areas face higher inflation compared to urban regions, with Bihar experiencing the highest rates.

(With inputs from agencies.)