Shafaqna Indai: India’s retail inflation surged to a 14-month high of 6.21% in October, driven by a significant rise in food prices, particularly vegetables. According to data released by the Ministry of Statistics and Programme Implementation on Tuesday, inflation based on the consumer price index (CPI) increased from 5.49% in September to 6.21% in October.
This marks a notable jump from August 2023, when retail inflation had risen to 6.83%. The data also revealed that inflation was higher in rural areas, which saw a rise of 6.68%, compared to 5.62% in urban areas.
The sharp increase in inflation was largely driven by food prices, with vegetable prices soaring by over 42% year-on-year. According to Sujan Hajra, Chief Economist and Executive Director at Anand Rathi Shares and Stock Brokers, “The inflation was significantly higher than our estimates for October, with food prices—especially vegetables—playing a major role. While other components of the core inflation also saw an uptick, food inflation is currently the primary driver.”
The Consumer Food Price Index (CFPI), which tracks food inflation, spiked to 10.87% in October, up from 9.2% in September. The rise was primarily fueled by a sharp increase in vegetable prices (42.18%), fruits (8.43%), and oils & fats (9.51%).
Rural areas experienced a CFPI inflation rate of 10.69%, while urban areas saw a slightly higher rate of 11.09%. The surge in food prices is expected to be a key factor influencing inflation trends in the near term.
