Retail Inflation Hits Multi-Year Low at 0.25% in October
India’s retail inflation dropped sharply to 0.25% in October, reaching its lowest level in years, according to official data released on Wednesday. The significant decline was primarily driven by GST rate reductions and falling prices of vegetables and fruits.
Key Takeaways
- Retail inflation fell to 0.25% in October, a multi-year low
- Food inflation turned negative at -5.02% during the same period
- GST rate cuts and favorable base effects contributed to the decline
Inflation Trend Analysis
The Consumer Price Index (CPI)-based inflation showed a substantial drop from 1.44% in September and 6.21% in October 2024. This marks one of the lowest inflation readings in recent years, providing relief to consumers and policymakers alike.
Food Inflation Turns Negative
According to data from the National Statistics Office (NSO), food inflation declined significantly to -5.02% in October. The negative food inflation indicates that food prices were actually lower compared to the same period last year.
Factors Behind the Decline
The NSO attributed the decline in both headline and food inflation to several key factors: the full-month impact of GST rate cuts, favorable base effects, and reduced inflation across multiple categories including oils and fats, vegetables, fruits, eggs, footwear, cereals and products, as well as transport and communication services.
