Retail price inflation falls to 5-month low of 4.35% in Sept on food prices

Noticeable slide was orchestrated by a fall in prices of vegetables

The Consumer Price Index (CPI)-based inflation rate fell to a five-month low of 4.35 per cent in September, from 5.59 per cent in the previous month, as food prices rose at a significantly lower pace of 0.68 per cent, compared to 3.11 per cent over this period, revealed the official data by the National Statistical Office on Tuesday.

This justified the accommodative stance of the Reserve Bank of India's monetary policy committee (MPC).

A part of the fall in inflation rate can also be explained by the rise in the base effect to 7.27 per cent in September