India's retail inflation rises to 5-month high of 7.41%

New Delhi, Oct 12: India's retail inflation rose to 7.41% in September, the fastest pace in five months, data released by the National Statistical Office (NSO) showed on Wednesday.

Food inflation, which accounts for nearly half the CPI basket, soared 8.60% in September 2022 as against 7.62% in August.

Meanwhile, industrial growth, as measured by the Index of Industrial Production (IIP), contracted 0.8% in August as compared to 2.4% in July.

Official data released on Wednesday showed that the retail inflation based on Consumer Price Index (CPI) was at 7.41 per cent in September.

It was at 7 per cent in August and 4.35 per cent in September 2021.

Inflation in food basket rose to 8.60 per cent in September this year from 7.62 per cent in August.

With inflation remaining above the 6 per cent level, RBI, now, will have to give a report to the central government citing reasons for failure to contain inflation at 4 per cent with a bias of 2 per cent on either side.

The central government has mandated RBI to ensure that retail inflation remains in the range of 2-6 per cent.

In September, RBI Governor Shaktikanta Das said acute imported inflation pressures felt at the beginning of this fiscal year have eased but it still remains elevated across food and energy items.

Earlier, a Reuters poll of 47 economists hinted retail inflation to surge to an annual 7.30% in September from 7% in the previous month, staying above Reserve Bank of India's upper tolerance band for a ninth month.

Earlier, the central government has introduced several measures to tame the stubborn inflation that may included export restrictions on rice.