Inflation hits an eight-month low, eases to 4.35% in September

Retail inflation of India eases to 4.35 percent in the month of September from 5.3 percent witnessed in August, government data released on Tuesday showed.

It is for the third time in a row that the Consumer Price Index fell between 4 to 6 percent which is also Reserve Bank of India's tolerance band for inflation.

The inflation number recorded in September is considerably lower than the reading in the corresponding month of last year during pandemic i.e. 7.27 percent.


Moreover, it is the lowest inflation growth recorded since April, 2021.

The moderation in the inflation growth rate is mainly on account of the ease in food prices that relaxed to 0.68% as compared to a Consumer Food Price Inflation (CPFI) recorded in August.

Since the country is witnessing recovery in demand after reopening of the economy, prices have driven up globally.

Last week, RBI Governor Shaktikanta Das had said that overall, the CPI headline momentum is moderating, which combined with favourable base effects in the coming months could bring about a substantial softening in inflation in the near term.