Retail inflation eases to 6.77% in October, lowest in three months

May make MPC less hawkish on rate hike; WPI inflation dips to 19-month low of 8.39% in Oct

India’s retail inflation softened to a three-month low at 6.77 per cent in October from 7.41 per cent in September as food prices declined substantially.

The easing in price pressure may turn the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) less hawkish when it meets next month even though a pause in the ongoing rate hike cycle is unlikely.

The data released by the National Statistical Office on Monday showed food inflation eased to 7.01 per cent from 8.6 per cent in September due to a decline in prices of vegetables, fruit, pulses, and edible oil.