Sakshi Batra is in conversation with Gaurav Choudhury, Deputy Executive Editor, Moneycontrol to find out if a lower headline retail inflation number is actually good news.
India’s retail inflation eased to 3.31 percent in October, the lowest in a year, as compared with 3.70 percent in September, driven by cheaper food items, as per data released by the government.
Consumer food price index witnessed disinflation, recording de-growth of 0.86 percent, from 0.51 percent in September and 1.90 percent a year ago, mainly driven by cheaper vegetables, fruits, pulses and sugar.
Despite lower inflation, experts feel that sequential hardening in the core inflation or non-food, fuel inflation, driven by miscellaneous items may pose some concern.
A lower rate of inflation for October amid softening crude oil prices and relatively stable domestic currency lowers the possibility of a rate hike by the central bank.