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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Delhi-bound Air India flight carrying MPs diverted due to snag, Venugopal says it was 'harrowing'
New Delhi (PTI): Senior Congress leader and Chairman of Parliament's Public Accounts Committee K C Venugopal has claimed that an Air India flight carrying him and several other MPs from Thiruvananthapuram to Delhi "came frighteningly close to tragedy".
In a statement, the airline said that Air India flight AI2455, flying from Thiruvananthapuram to Delhi, was diverted to Chennai on Sunday evening due to a technical issue.
In a post on X on Sunday night, Venugopal said, "Air India flight AI 2455 from Trivandrum to Delhi -- carrying myself, several MPs and hundreds of passengers -- came frighteningly close to tragedy today."
"What began as a delayed departure turned into a harrowing journey. Shortly after take-off, we were hit by unprecedented turbulence. About an hour later, the Captain announced a flight signal fault and diverted to Chennai...
"For nearly two hours, we circled the airport awaiting clearance to land, until a heart-stopping moment during our first attempt -- another aircraft was reportedly on the same runway. In that split second, the Captain's quick decision to pull up saved every life on board. The flight landed safely on the second attempt," he said.
"We were saved by skill and luck. Passenger safety cannot depend on luck. I urge @DGCAIndia and @MoCA_GoI to investigate this incident urgently, fix accountability, and ensure such lapses never happen again," the Congress leader wrote.
Responding to Venugopal on X, Air India said, "We would like to clarify that the diversion to Chennai was precautionary due to a suspected technical issue and poor weather conditions."
"A go-around was instructed by Chennai ATC (air traffic control) during the first attempted landing at Chennai airport, not because of the presence of another aircraft on the runway ... Our pilots are well-trained to handle such situations, and in this case, they followed standard procedures throughout the flight," Air India claimed.
"We understand that such an experience can be unsettling and regret the inconvenience the diversion may have caused to you. However, safety is always our priority," the airline added.
The flight AI2455, operated with an Airbus A320 aircraft, was airborne for more than two hours, according to information available on the flight tracking website Flightradar24.com.
"The flight crew of AI2455 operating from Thiruvananthapuram to Delhi on August 10 made a precautionary diversion to Chennai due to a suspected technical issue and given the weather conditions en route," the airline said in a statement earlier.
Air India said the flight landed safely in Chennai, where the aircraft will undergo the necessary checks.
Alternative arrangements are being made to fly the passengers to their destinations at the earliest, Air India said, and regretted the inconvenience caused.
Details about the number of passengers were not available.
The flight took off a little past 8 pm from Thiruvananthapuram and landed in Chennai at around 10.35 pm, according to Flightradar24.com.
In recent weeks, there have been instances of Air India's aircraft facing technical snags.
