Retail inflation rises to 7.41% in September; industrial sectors hit too

September’s retail inflation level highest since April 2022

India’s retail inflation accelerated to 7.41% in September from 7% in August, with food price inflation surging sharply from 7.62% in August to 8.6% in September, the National Statistical Office (NSO) said on Wednesday.

At 7.41%, September’s retail inflation level is the highest since April this year, when price rise had hit a nearly eight-year high of 7.79%. This is the ninth month in a row, when inflation has stayed above the Reserve Bank of India’s upper tolerance threshold of 6%.

The country’s rural inflation also picked up further steam from 7.15% in August to reach 7.56% in September, while urban consumers also experienced a resurgence in price rise at 7.27% from 6.72% a month ago.

Urban consumers also faced a higher surge in food inflation during September, at 8.65%, from 7.55% a month ago. For Rural India, the uptick was only slightly less pronounced, with food prices rising 8.53%, compared to 7.6% in August.

The pace of price rise for cereals increased to 11.53%, with rural India facing nearly 12% inflation in this segment in September, up sharply from 9.6% in August and nearly doubling from the 6.9% level in July.

Similarly, vegetable inflation has also virtually doubled over two months, from 10.9% in July to 18.05% in September, with urban consumers facing a sharper 20.05% rise.

Inflation in clothing and footwear, which has been over 8% since December 2021, crossed the 10% mark to reach 10.17% in September, with rural India facing a higher inflation rate of 10.41% and footwear prices surging at 12.3%.