Ghar Kharcha: Signs Of Relief
After having to pay high prices for vegetable in the past two months, Indian households have likely seen relief in September.
India's retail inflation continued to ease in September, led by a deceleration in vegetable prices, bringing relief to households.
Retail inflation stood at 5.02% in September, compared to 6.83% in August. Food and beverage inflation was 6.3% in September, as against 9.19% in August.
After having to pay high prices for vegetables, such as tomatoes, for the past two months, Indian households are likely to have seen relief, according to official data. Tomato prices corrected by 21.5% on an annual basis and by 64.9% on a sequential basis. While potato prices also saw a sequential correction, onion prices rose.
However, food inflation—excluding vegetables and fruits—was at 6.7%, and non-volatile food inflation remained elevated at around 9%, according to Suvodeep Rakshit, senior economist at Kotak Institutional Equities. Further, high-frequency data in October points to a rise in prices of cereals, pulses, and fruits, while vegetable prices continue to moderate, he said.
Core inflation—all items excluding food and fuel—has continued to ease. It fell to 4.6% in September from 4.8% in August. This was the lowest since April 2020.
Prices of clothing and footwear, housing, household goods and services, health, recreation and amusement are providing respite amid the festive season.
Among utilities, electricity bills rose, but at a slower pace than a month ago. LPG prices reflected price cuts. The government had cut LPG prices by Rs 200 per cylinder as of Aug. 30.
