In October, the prices of vegetables went down by 2.7%, indicating a decrease in their overall cost. However, during the same period, the general inflation in consumer food prices did not show significant change, remaining almost the same.The decline in vegetable prices suggests that consumers experienced relief as the cost of this essential food item became more affordable. Despite this positive development, the broader picture of food prices for consumers, including various items, didn’t see a substantial shift.It’s important to note that the stability in overall consumer food price inflation means that the prices of various food products, when considered together, did not undergo significant fluctuations. While vegetables became more budget-friendly, other components of the consumer food basket did not experience notable changes, maintaining a relatively steady pricing scenario for consumers during this period.
In October, India experienced a decline in retail inflation, reaching a four-month low of 4.87%, down from just above 5% in September. This reduction was partly attributed to the moderation in vegetable prices, which eased to 2.7% from the previous month’s 3.4%. Despite this, the overall consumer food price inflation remained nearly unchanged at 6.6%.
Several factors contributed to this decline. Firstly, the base effects from October of the previous year, when retail prices surged by 6.8%, played a role in cooling down the headline inflation rate. Additionally, there was a noticeable deceleration in the prices of non-food items, including services, clothing, footwear, and fuel and light.
Notably, the prices of services, clothing, and footwear witnessed a slowdown, contributing to the overall easing of inflation. Furthermore, aided by reductions in the prices of LPG cylinders, the costs associated with fuel and light dropped by 0.4% compared to October of the preceding year. Overall, these factors collectively influenced the downward trend in India’s retail inflation rate during October.