The latest government data reveals a mixed trend in October’s food inflation, with a notable 14% drop in oil and fat prices, while pulse prices surged by 19%. Retail inflation hit a four-month low at 4.87%, driven by reduced core and fuel inflation. Cereal prices sustained double-digit inflation, growing by 11% YoY, while stable vegetable prices saw a 2.7% YoY increase. Gaura Sen Gupta, India Economist at IDFC First Bank, attributes the moderation to core inflation and base effects. Chief Economist at CRISIL, Dharmakirti Joshi, anticipates softening food inflation in the December quarter, influenced by the kharif harvest and government intervention. Joshi emphasizes ongoing risks from Middle East conflicts to oil prices and suggests RBI vigilance due to inflation above the 4% target.
October Sees Divergent Trends in Food Inflation: Core Inflation Eases, Fuel Prices Decline
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