India's Retail Inflation Hits Eight-Year Low
India’s retail inflation cooled to an eight-year low of 1.54 per cent in September, driven by a sharp decline in food prices, government data showed.
The reading was down from 2.07 per cent in August and below a Reuters poll estimate of 1.7 per cent, marking the lowest level since June 2017.
- Food prices saw a 2.28 per cent year-on-year drop in September.
- Vegetable prices plummeted 21.38 per cent following a 15.92 per cent decline in the previous month.
The figure has now fallen below the Reserve Bank of India’s (RBI) tolerance band of 2 per cent–6 per cent for the second time in three months.
The RBI is mandated to prevent inflation from breaching this range for more than three consecutive quarters.
Author's summary: India's retail inflation hits 8-year low at 1.54%.