Inflation Surge: October's Economic Crunch

Retail inflation climbed to 6.21% in October from 5.49% in September due to soaring food prices, surpassing the RBI's tolerance threshold. Consumer price index-based inflation hit 4.87%, while food basket inflation jumped to 10.87%. The RBI's target remains at 4%, plus or minus 2%.

Retail inflation surged to 6.21% in October, up from 5.49% the previous month, primarily driven by escalating food prices. This increase has breached the Reserve Bank of India's (RBI) upper tolerance level, according to data released on Tuesday.

The consumer price index-based inflation registered at 4.87% in October 2023. The National Statistics Office reported a significant rise in the food basket inflation, which climbed to 10.87% in October from 9.24% in September and 6.61% a year earlier.

The RBI has maintained the key short-term lending rate, adhering to the governmental mandate to maintain inflation at 4%, with a permissible margin of 2% on either side.

(With inputs from agencies.)