The retail inflation rate has jolted in October. According to Government data, retail inflation has reached 4.62 percent in October. Earlier in September, the retail inflation was at 3.99 percent. After about 15 months, the inflation rate has again reached above 4 percent.
Inflation increases due to Vegetables being expensive
In fact, inflation was recorded at 4.62 percent in October due to the increase of 26 percent in the prices of onions, tomatoes and other vegetables. The RBI had estimated 4 percent for retail inflation. This is the highest level in the last 15 months.
According to the data, the Consumer Price Index (CPI) has increased to 4.62 percent in October. According to the Ministry of Statistics and Program Implementation (MOSPI), this has increased due to the rise in prices of food and drink.
Efforts are underway to control inflation
To overcome the retail inflation, the government has set a medium term inflation target. Under this, an effort will be made to maintain inflation of 4 percent till March 2021. Food price growth in October was 7.89 percent.
Significantly, to overcome the sluggishness of the economy, the RBI is continuously cutting the repo rate. But in October inflation has increased once again. So far this year, RBI has cut the repo rate by 1.35 percent, the repo rate is still 5.15 percent.
