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India’s retail inflation rate rises to 4.41% in September 2015
Posted On Oct 12 2015
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Separate data from the statistical office showed on Monday that industrial production grew 6.4 percent year-on-year during August, following a revised 4.1 percent gain in July.
Country’s retail inflation, based on the consumer price index (CPI), for September increased to 4.41 percent, from 3.74 percent recorded for the previous month, on the back of higher food prices, official data showed on Monday.
“Going ahead as well, overall food prices could be expected to stay under control despite a 14 per cent deficient monsoon, led by government’s supply side intervention policies, she said”.
But the fact is that inflation has largely been a contained danger with the central bank confident of achieving its 5.8 percent target by January 2016.
Products, whose prices fell include protein rich items like meat and fish, where inflation slowed to 5.59%, while milk and its products turned cheaper with inflation rate at 5.05 per cent. Similarly, inflation in sugar and confectionery category remained in negative zone at -12.91 per cent. The latest official figures on the jobs market on Wednesday are expected to put pay growth at 3.1%.
A Reuters poll of economists had expected consumer inflation to rise 4.3 per cent. The forecasts of the 20 economists polled ranged between 3.6 per cent and 5.0 per cent. However, the growth may not come at 8.1-8.5 per cent as projected by the Finance Ministry in February.
The World Bank is the only agency which has so far not lowered India’s growth forecast.
Vehicle sales rose for the 11th straight month in September, indicating strong demand that’s waiting to peak during the festive season starting mid-October.
Surveys conducted by the Reserve Bank of India (RBI) suggest a moderation in consumer confidence and a lower level of optimism from the industry. In September, prices of pulses were up 29.76 per cent compared with the last financial year. Inflation expectations, though, remain in double digits for the second quarter running.
