Retail inflation rises to 4.48% in Oct, reverses 4-month downward trend

4-month downward trend reversed; core inflation rises to 5.8%, substantiates FinMin fears

India’s retail inflation inched up to 4.48 per cent in the demand-driven festive month of October from 4.35 per cent in September, reversing the four-month downward trend. Core inflation, which relates to non-food and non-oil items, rose to 5.8 per cent in the month after remaining stagnant at 5.6 per cent in August and September, substantiating concerns raised by the finance ministry in its recent report.

Core inflation generally guides the Reserve Bank of India’s monetary policy committee (MPC) to decide on its stance since food and fuel inflation rates are uncertain by their very nature. However, economists expect the