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Bringing some festive cheer to the aam admi , the consumer price index-based inflation for September cooled down to 6.46 per cent, aided by sharp drop in vegetable prices. It was the lowest since India started computing Consumer Price Index (CPI), in January 2012
This is the fourth straight month when CPI inflation has been lower than 8 per cent. It has raised hopes that the RBI will be able to meet its January 2015 goal of keeping retail inflation within 8 per cent.
Triggered largely due to the sharp fall in vegetable price inflation, which lowered significantly to 8.59 per cent as against 15.15 per cent in August, the overall food inflation came down to 7.67 per cent in September against 9.42 per cent in the previous month.
Fruit prices also fell, bolstering the downward slide in overall food inflation.
The retail inflation print for September was much lower than the revised August 2014 inflation of 7.73 per cent (from 7.8 per cent estimated earlier).
Reacting to the latest CPI number, Anis Chakravarty, Senior Director, Deloitte in India, said the moderation was primarily food articles driven.
“The RBI will find some comfort in these numbers and will aid in the nominal anchoring that has been set. We do not expect the rates to be revised until this trend of sub 7 per cent CPI holds,” Chakravarty said.
The Reserve Bank of India is now guided by the CPI-based inflation as its monetary policy anchor.
The wholesale price index-based inflation for September is slated to be released on Tuesday.
Aided by a steady fall in global crude oil prices, which hit a two-year low on Thursday last, the WPI for September is likely to come lower than the August WPI print of 3.7 per cent.
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