Retail inflation spikes to 8-month high of 7.34% in September on costlier food items

New Delhi: Pushed by rising prices of essential kitchen items, the retail inflation rose to an eight-month high of 7.34 per cent in September, making the RBI's task to push growth by reducing the interest rate even more difficult in coming days.

The Consumer Price Index (CPI)-based inflation was 6.69 per cent in August and 3.99 per cent in September 2019.

Inflation has been hovering above 4 per cent since October 2019. The previous high in the CPI was witnessed at 7.59 per cent in January 2020.

According to the data released by the National Statistical Office (NSO), the Consumer Food Price Index (CFPI) crossed the double-digit mark and was 10.68 per cent in September. It was 9.05 per cent in the previous month.

The inflation in the vegetable segment was 20.73 per cent in September, significantly up from 11.41 per cent in the preceding month. Similarly, the rate of price rise in the fruits was high over August.

Data showed that the rate of price rise in the protein-rich eggs was 15.47 per cent in September compared to 10.11 per cent in August.

The retail inflation was also high month-on-month in 'meat and fish', and 'pulses and products'. However, it was lower in 'cereals and products' and 'milk and products'.

The government data further showed that the CPI-based price rise was lower in the 'fuel and light' segment at 2.87 per cent during September over 3.10 per cent in the preceding month.

The government has tasked the Reserve Bank of India to keep the retail inflation at 4 per cent, with a margin of 2 per cent on either side.