India’s Retail Inflation Spikes to 6.21% in October 2024, Driven by Food Price Surge
Retail inflation in India increased significantly from 4.87% to 6.21% in October 2024 compared to the same time the previous year. Highlighting the effects of skyrocketing food prices, this increase exceeds the Reserve Bank of India’s (RBI) goal range. At 6.68%, inflation was highest in rural areas, while it was only 5.62% in urban areas.
RBI’s Inflation Target and Policy Stance
With a goal range of 2-6%, the RBI permits a 2% buffer in each case in order to maintain inflation at about 4%. The central bank has maintained a cautious stance in the face of sharp price swings by maintaining the repo rate at 6.5% despite growing inflation.
Rising Food Prices: The Key Driver
A startling 10.87% was reached by the Consumer Food Price Index (CFPI) in October 2024. The rate of food inflation in rural regions was 10.69%, whilst in urban areas it increased somewhat to 11.09%. At 6.61%, this rate was much lower a year ago.
What’s Causing the Food Inflation Spike?
Vegetable prices had the biggest increase, rising by an astounding 42.18% from October of last year. Vegetable inflation was highest in urban regions (42.63%), while it was only slightly higher in rural areas (41.94%). Inflation was also caused by other food items: fruits grew by 8.43%, while oils and fats jumped by 9.51%.
Statewise Breakdown of Inflation
The pressure of inflation was greater in certain states than others. With an 8.84% rise, Chhattisgarh led the list, followed by Odisha (7.51%) and Bihar (7.83%). At the opposite extreme, Delhi had the lowest inflation rate (4.01%), followed by Maharashtra (5.38%) and West Bengal (4.63%).
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