India’s retail inflation dropped to a three-month low of 6.77% in October, government data released on Monday showed.
Retail inflation has, however, remained above the upper limit mandated by the Reserve Bank of India for 10 months now. The central bank aims to keep inflation between 2% and 6%.
In October, the food inflation dropped to 7.01% from 8.60% in September. The highest price rise was recorded in spices (18.02%), followed by cereals (12.08%), prepared meals (7.84%) and vegetables (7.77%).
The price rise was highest in the clothing and footwear segment at 10.16%. The inflation rate in the fuel and light segment plummeted to 9.93% in October from 10.39% in September.
On Saturday, Reserve Bank of India Governor Shaktikanta Das had hinted that retail inflation would ease below the 7% level for October. “Inflation is a matter of concern with which we are now dealing and dealing effectively,” he had added.
To tackle inflation, the Reserve Bank has raised the repo rate on three occasions between May and September. During the period, the central bank has also cut its growth forecast to 7% from an earlier estimate of 7.2%.