What is the current status of India's retail inflation?
Retail inflation in India eased to a three-month low in September, standing at 5.02%, down from 6.83% the previous month. This figure was slightly below a forecast of 5.50%.
What percentage of the overall consumer price basket does food inflation account for?
Food inflation accounts for nearly half of the overall consumer price basket in India.
What is the target inflation rate set by the Reserve Bank of India (RBI)?
The RBI has set a target inflation rate of 4%. However, it has signaled that a rate below 6% might not be sufficient to warrant a reduction in key lending rates.
What were the key factors influencing recent inflation trends?
Vegetable prices and food inflation, in general, were key drivers of elevated inflation in recent months. Vegetable inflation significantly eased in September, contributing to the overall decline in inflation.
What is the outlook for food inflation in India?
Despite the recent drop in the headline inflation rate, experts suggest that food inflation remains a concern, particularly due to India's dry monsoon. The government has taken measures to restrain food inflation.
How is core inflation defined, and what was its recent estimate?
Core inflation excludes volatile food and energy prices. It was estimated to be around 4.5% in September, a slight decline from August. However, the Indian government does not release specific core inflation figures.
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