October 2024 retail inflation breaches RBI's 6% tolerance limit
In News
What Happened
Why It Matters
Background
History & Context
What Changed
- ▶
Headline Inflation: BEFORE October 2024, retail inflation was contained within the RBI's 2-6 percent tolerance band (recording 5.49 percent in September). NOW, it has breached the upper limit to reach 6.21 percent.
- ▶
Food Inflation (CFPI): BEFORE, food inflation was elevated but in single digits (around 9.24 percent in September). NOW, it has surged to double digits at 10.87 percent.
- ▶
Monetary Policy Expectations: BEFORE, markets anticipated imminent repo rate cuts to spur economic growth. NOW, the MPC is widely expected to hold rates steady in the near term to prioritize inflation control.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding retail inflation in India? 1. The Consumer Price Index (CPI) data is compiled and released by the Reserve Bank of India. 2. The statutory mandate of the Monetary Policy Committee (MPC) is to maintain CPI inflation at 4 percent with a margin of +/- 2 percent.