Consumer Price Index (CPI) or retail inflation for the month of September 2019 grew to 3.99 percent as against 3.28 percent in August.

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Retail inflation for September of last year stood at 3.70 percent.

Data released by the Ministry of Statistics and Programme Implementation showed rural inflation for September 2019 rose to 3.24 percent as against 2.25 percent in August 2019 and 3.27 percent in September of 2018.

Urban retail inflation, however, rose to 4.78 percent as against 4.31 percent in September 2018 and 4.49 percent in August 2019.

Rupa Rege-Nitsure, group chief economist, L&T Financial Services said, "While the CPI print looks higher at 3.99 percent, it is entirely on the back of sharp spikes in the prices of vegetables, meat and fish, and pulses."

Garima Kapoor, economist and vice-president, Elara Capital said, "Arrival of Kharif harvest and prospect of a good Rabi crop owing to comfortable water table in reservoirs means that food prices are expected to cool from November onwards, helping inflation to trend back to RBI's (Reserve Bank of India) projected levels and providing room for the RBI to cut rates. We expect the MPC (Monetary Policy Committee) to cut policy repo rate by another 50 bps until FY20-end with a 25 bps cut in December."

(With Reuters)

First Published:Oct 14, 2019 5:38 PM IST