New Delhi, October 12: The consumer inflation, also referred to as retail inflation, surged to 3.77 per cent in September as opposed to 3.69 per cent in August, as per the data released by the Central Statistics Office. The rates, determined by the Consumer Price Index, is below the Reserve Bank of India's mid-term target of 4 per cent.
The inflation rate was also in line with the estimates issued by 45 noted economists, who featured in a poll by news agency Reuters. Majority of them had predicted the retain inflation to be capped within 4 per cent despite the soaring fuel prices. Inflation, Depreciation of Rupee Results of BJP’s ‘Wrong Policies’.
Food inflation, meanwhile, has jumped to 0.51 per cent this month as compared to 0.29 per cent in August. The prices of food grains make nearly half of the CPI -- a kay indicator used by the RBI for revising the lending rates.
Notably, the retail inflation remained low for nearly 10 months before rising to 3.69 per cent last month. This had indicated that the RBI may increase its lending rate. However, the central bank, in its latest monetary police report, decided to keep the rates unchanged.
Industrial Production Goes Down
While inflation has accelerated, the factory activity growth has decelerated last month. According to a seperate set of data released by the CSO today, the Index of Industrial Production (IIP) - stood at 4.3 per cent in August, sliding down from 6.6 per cent in the preceding month.