Points to Remember:
- India’s retail inflation in October rose to 4.62%, breaching the Reserve Bank of India’s (RBI) medium-term target of 4% for the first time in 15 months.
- However, core inflation, which reflects demand in the economy, fell sharply due to weak economic conditions.
- Consumer Price Index inflation rose to 4.62 percent in October compared to 3.99 percent in September, according to data released by the MOSPI.
- Food and beverage inflation rate accelerated to 6.93%, driven by a 26.1% surge in prices of vegetablesPulses and products gained 11.7%, while fuel and light prices fell 2.02%.
What is inflation?
- The sustained increase in the general price level of goods and services in an economy over a period of time.
What is Core Inflation?
- Core inflation is the change in the costs of goods and services but does not include those from the food and energy sectors.