India’s retail inflation fell to a record low of 0.3% in October, offering welcome relief to households. Reuters reports a similar figure of 0.25%, marking one of the slowest rates of price rise in recent years.
The drop is largely due to falling food prices. Overall food inflation fell around 5%, with vegetables down over 27%. Onion prices plunged 54%, tomatoes 43%, and potatoes 37%. Cuts in the GST on everyday items also helped keep prices in check.
Core inflation, which excludes volatile food and fuel costs, eased slightly to 4.4%, while September’s inflation was revised to 1.44%.
Economists say the subdued inflation gives the Reserve Bank of India space to consider cutting interest rates in December. However, they caution that lower prices alone do not guarantee stronger growth, with upcoming GDP data expected to show the real state of the economy.
For consumers, this means some relief in their daily expenses, while policymakers now have room to support economic growth.
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