Inflation soars to 14-month high of 6.2 pc in Oct, breaches RBI's tolerance level
New Delhi, Nov 12: Retail inflation breached the Reserve Bank's upper tolerance level, soaring to a 14-month high of 6.21 per cent in October mainly on account of rising food prices.
Inflation based on the consumer price index (CPI) was 5.49 per cent in September and 4.87 per cent in the year-ago month.
Retail inflation trended below the RBI's upper tolerance band of 6 per cent since September last year. It was at 6.83 per cent in August 2023.
The RBI, which mainly factors in the CPI while arriving at its bi-monthly monetary policy, has been tasked by the government to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
According to the data released by the National Statistics Office (NSO) on Tuesday, inflation in the food basket increased to 10.87 per cent in October, compared to 9.24 per cent in September and 6.61 per cent in October 2023.
"Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of October 2024 is 6.21 per cent. Corresponding inflation rates for rural and urban are 6.68 per cent and 5.62 per cent, respectively," NSO said.
The NSO data showed that during October 2024 significant decline in inflation was observed in the 'pulses and products', eggs, 'sugar and confectionery' and spices subgroup.
"High food inflation in October 2024 is mainly due to increase in inflation of vegetables, fruits and oils and fats," the NSO said.
Aditi Nayar, chief economist, ICRA the CPI inflation worryingly soared further to a 14-month high in October 2024, breaching the upper limit of the MPC's medium-term target range of 2-6 per cent.
"The sequential hardening in inflation was largely led by the food and beverages segment, followed by a mild uptick in the core items," she said.
Nayar further said that with the retail inflation breached the 6 per cent tolerance level and expected to exceed the MPC's estimate for the third quarter FY2025 by at least 60-70 bps, "a rate cut in the December 2024 policy review appears ruled out".
"We anticipate that a shallow rate cut cycle of 50 bps may commence in February 2025 or later," she said.
The RBI had kept the key short-term lending rate unchanged after the last monetary policy review in October citing concerns on the inflation front.
The price data are collected from selected 1,114 urban markets and 1,181 villages covering across the country by the NSO on a weekly roster.
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Karnataka Muslim Convention to be held in Bengaluru on May 16
Muslim organisations to release report on Congress govt’s three-year performance
Bengaluru: Major Muslim organisations and federations in Karnataka have decided to organise a large public convention titled ‘Karnataka Muslim Convention’ at Town Hall in Bengaluru on May 16. During the convention, a comprehensive report reviewing the three-year performance of the Congress government under the theme “What did the Congress government promise? What did it do? What next?” will be released.
According to a statement issued on Friday, no politicians will be invited to the convention. The report will be submitted to the government and all MLAs after the event.
The convention is being held at a time when the Congress government is nearing the completion of three years in office on May 20. Muslim organisations have expressed dissatisfaction, alleging that despite extending strong support to the Congress in bringing it to power, the community is being neglected.
The Convention is being organised at time when there are concerns over inadequate political representation for Muslims, alleged neglect of community demands, and the suspension of senior Muslim leaders who had worked for the party for decades.
The organisers said the convention aims to raise questions on what the Congress government has delivered so far and what further steps are expected from the government.
The decision to hold the convention was taken during a meeting held on May 6 at A J International Hotel in Shivajinagar, Bengaluru. Representatives of major Muslim organisations, associations, ulema bodies, federations, and members of the ad hoc committee of Karnataka Rajya Muslim Okkoota attended the meeting.
More than 75 representatives and delegates, including senior ulemas, jamaat leaders, lawyers, retired officials, journalists and members of the KRMO ad hoc committee, participated in the discussions.
Members of the KRMO ad hoc committee’s report preparation team and experts from different sectors presented a detailed report on the Congress government’s three-year performance. The report examined promises made to Muslims on ten major issues, the extent to which they were fulfilled, pending promises, alleged discrimination in representation, and the demands now being placed before the government.
The report covered issues such as the hijab ban, reservation cancellation, hate speech and hate crimes, budget allocation, political representation, waqf matters, the anti-cow slaughter law, anti-conversion law, scholarships and educational grants.
Participants offered suggestions and recommendations on various points, and necessary corrections to the report were accepted after detailed discussions.
The meeting also reportedly expressed strong dissatisfaction over the manner in which the Congress government has treated the Muslim community. Participants are said to have opined that if the government and the Congress party continue in the same manner, the community should keep its political options open.
It was later decided that the report would be officially released at the large public convention on May 16 under the title “Karnataka Muslim Convention – What did the Congress government promise? What did it do? What next?”
The organisers appealed to people from all districts of the state to participate in large numbers and send a strong message to the government and the Congress party through the convention.
They also decided that all organisations, jamaats and associations should work towards ensuring participation from every district in Karnataka.
The statement reiterated that no politicians would be invited to the May 16 convention and that the report on the Congress government’s three-year performance would be submitted to the Chief Minister, Deputy Chief Minister, ministers and MLAs after the event.
