Easing food prices pushed the reading on CPI down to a 5-month low as the retail inflation print clocked in at 4.35% for September. This is the third straight month that inflation has been in the RBI's 'tolerance' range of 2%-6%.
The inflation in food basket eased to 0.68% in September 2021, significantly down from 3.11% in the previous month. The weightage of food in the CPI is close to 50% which is was aided the drop in the headline number.
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Ironically retail inflation print has eased to a 5-month low while fuel prices have escalated to record high at pumps with diesel crossing the 100 mark and petrol retailing over Rs 110/litre in Mumbai. The reflection of which will be more apparent in the WPI index which will be released on Thursday, October 14.