Despite a decline in retail inflation to a four-month low of 4.87 per cent in October, India’s food inflation continues to exceed New Delhi’s “comfort” level, as indicated by a government official on Wednesday.
The country’s retail inflation is approaching the central bank’s target of 4 per cent, a prerequisite for initiating rate reductions, the news agency Reuters reported.
Food inflation, constituting almost half of the overall consumer price basket, remained at 6.61 per cent in October, showing minimal variation from the upwardly revised figure of 6.62 per cent in September.
According to the report, the official expressed the desire for a more comprehensive moderation in food prices.
The volatility in vegetable, milk, and cereal prices has been notable and serves as a key driver of inflation in the Asian country.
RBI Governor Shaktikanta Das, in a statement last week, underscored the risks associated with a surge in food prices, cautioning that India is susceptible to “recurring and overlapping” shocks in food prices.
