Retail inflation rises to 7.41% in September due to surging food prices

• Retail inflation spiked to 7.41% in September, mainly due to costlier food items.
• This is the ninth consecutive month during which retail inflation has remained above RBI's upper tolerance band of 6%.
• For comparison, retail inflation stood at 4.35% in September 2021.

Retail inflation spiked to 7.41% in September, mainly due to costlier food items.

For the ninth month in a row, retail inflation has remained above the Reserve Bank of India's tolerance level of 6%.

Official data released on Wednesday showed that the retail inflation based on Consumer Price Index (CPI) was at 7.41% in September.

It was at 7% in August and 4.35% in September 2021.

Inflation in food basket rose to 8.60% in September this year from 7.62% in August.

With inflation remaining above the 6% level, RBI, now, will have to give a report to the central government giving reasons for failure to contain inflation at 4% with a bias of 2% on either side.

The central government has mandated RBI to ensure that retail inflation remains in the range of 2-6%.

In September, RBI Governor Shaktikanta Das said acute imported inflation pressures felt at the beginning of this fiscal year have eased but it still remains elevated across food and energy items.

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