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CPI inflation eases to near three years low at 6.46% in September 2014

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Capital Market
Last Updated : Oct 14 2014 | 9:15 AM IST

Lower Fuel, Light and Food Prices pull down the retail inflation

The headline CPI inflation (combined) for September 2014 fell to the lowest level in near three years at 6.46% (y-o-y) after rising to 7.80% in August 2014, driven by lower food prices and moderation in some services-oriented segments. The index remained same to 145 seen in August 2014 but higher from 136.2 September 2013. With a weightage of 50%, inflation in food, beverages, recorded lower rate of inflation at 7.56% from 9.16% recorded in August. Consumer Food Price Indices (CFPI) for all India for rural, urban and combined, released separately saw a growth of 7.78%, 7.45% and 7.67%, respectively.

The core CPI inflation eased to 5.9% in September 2014 from 6.9% in August 2014, the lowest reading for the CPI data with the Base 2010:100.

Within the Food, beverages and tobacco category, vegetables recorded the maximum fall in prices as inflation inched to 8.59% in September 2014 higher from 15.15% in August 2014. There was a fall in prices of fruits (24.27% in August 2014 to 22.4% in September 2014 (y-o-y) and sugar as its price eased at a faster rate of 0.64%.

CPI inflation in protein-rich items such as eggs, fish and meat eased to 6.35% (y-o-y) in September from 7.71% in August. The rate of price rise for cereals and related products eased to 6.42% in September from 7.39% in the previous month. Moreover, the price of milk and its products eased to 11.08% in September compared with 11.70% in the previous month. Prices of condiments and spices also eased to 8.58% from 9.36%in August. Moreover, the fuel and light category further eased to 3.45% from 4.15% in August led by the slowdown in global crude prices and the price of clothing, bedding and footwear products also eased from 8.53% in August to 7.59% in September.

Among the miscellaneous components (most of which are services-oriented), transport and communication and household requisites led the softening at 2.39% and 3.41% from 4.71% and 4.99%, respectively.

The rate of price rise in rural area eased to stand at 6.68%, lower from 8.35% in August. While in urban areas, also the inflation eased to 6.34% from 7.04%.

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First Published: Oct 13 2014 | 8:16 PM IST

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