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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