Ordeal for common man is far from over as retail inflation again entered double digits after seven months in October on the back of costlier vegetables and fruits, such as onions and tomatoes.
Double digit inflation elicited sharp reactions from Indian Inc saying it was “disturbing”, and requested Government must immediately address supply side bottlenecks to bring down the consumer price inflation.
“To turn incipient signs of progress into a firm recovery, there is a need to address structural issues, which are creating supply side hurdles in the way of growth. The sustained high CPI is a direct fallout of inflation in primary articles, which needs supply side interventions,” CII Director General Chandrajit Banerjee said.
“The increase in the retail inflation to 10.09 per cent is quite a disturbing trend. What is even more disturbing is that the expectations of prices coming down because of good Monsoon seem to have been belied,” opined Assocham Secretary General D S Rawat.
Inflation as measured by the consumer price index (CPI) was at 9.84 per cent in September and 9.52 per cent in the previous month.
Vegetable prices rose 45.67 per cent in October from a year earlier, compared with a 34.93 per cent increase in the previous month, according to Government data released on Tuesday. Fruits were dearer by 12.84 per cent.
CPI-based inflation remained in double digits for several months until March this year before it declined to 9.39 per cent in April. Inflation in the food and beverages segment was 12.56 per cent in October compared with 11.44 per cent in September.
The data showed that the corresponding provisional inflation rates for rural and urban areas for October were 10.11 per cent and 10.2 per cent, respectively.
For CPI inflation, price data are collected from select towns by the National Sample Survey Organisation and from select villages by the Department of Posts.
Data on inflation based on the wholesale price index will be released later this week.last month, the Reserve Bank hiked the key lending rate (repo rate) by 0.25 per cent to contain inflation in continuation of its hardline stance.