Retail Inflation Surges to 14-Month High Due to Rising Food Prices
New Delhi, November 12, 2024: Retail inflation in India has hit a 14-month high of 6.21% in October, driven by soaring prices of essential food items such as fruits, vegetables, meats, and oils, according to data released by the National Statistical Office (NSO). Food inflation alone surged to 10.87%, marking the first double-digit increase in 14 months.
The sharp rise in food prices has impacted overall inflation, which has now breached the Reserve Bank of India’s 4% inflation target for the second consecutive month. This spike reduces hopes of any immediate rate cut from the central bank during its December monetary policy meeting.
Economists warn that persistent inflation in essential goods may affect the purchasing power of households and further delay monetary easing efforts.