Retail inflation in September rose to 5.54 per cent, according to data released by the government on Monday, October 12. The uptick was primarily driven by costlier food items. Consumer Price Index-based inflation was recorded at 4.83 per cent in August. The September inflation figures were the highest in the new series of indices released in January.
Food package inflation increased to 7.74 per cent from 5.97 per cent in the previous month. The government data revealed that rural areas witnessed higher inflation as compared to Urban areas.
"Corresponding inflation rates for rural and urban are 6.08% and 4.88%, respectively," an official press release said.
Top Items Contributing To Higher Inflation
Top 5 Items With High Inflation | Top 5 Items With Low Inflation |
|---|---|
Onion | Potato |
Silver Jewellery | Tomato |
Ginger | Motor car and Jeep |
Garlic | Lady's Finger |
Lemon | Coconut |
Top States With Higher Inflation
Tamil Nadu (6.81%), Odisha (6.70%), Madhya Pradesh (6.68%), Telangana (6.64%) and Andhra Pradesh (6.29%).
RBI Hikes Repo Rate
Earlier this month, the Monetary Policy Committee of the Reserve Bank of India (RBI MPC) hiked the repo rate by 25 bps, taking it to 5.50 per cent. This was the first rate hike since February 2023.
The repo rate was increased amid mounting inflation pressure and geopolitical concerns due to an energy supply chain crisis in the Middle East. Economists from many global and domestic banking and finance bodies have also voted in favour of a hike in repo rates.