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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
CM Siddaramaiah says no decision taken on 4 per cent Muslim reservation in govt tenders
Mysuru (Karnataka), Nov 13: Karnataka Chief Minister Siddaramaiah on Wednesday said there was a demand for four per cent reservation for Muslims in government tenders, but no decision has been taken yet on it.
Prominent Muslim leaders, including Karnataka Minister for Municipal Administration and Hajj, Rahim Khan, Congress MLAs and MLCs wrote to the chief minister on August 24 demanding to consider giving four per cent reservation to socially and economically backward Muslims in government contracts. The chief minister wrote on the petition on August 31 that the file should be put up, sources said.
"There was a demand for four per cent reservation, but we have not taken any decision yet," Siddaramaiah told reporters here.
When asked about the BJP raking up this issue, he said, "The BJP wants to communalise everything. Their job is to create a rift between Hindus and Muslims. Did they ever wish peace in society?"
BJP state president B Y Vijayendra termed the purported move unhealthy.
"In a bid to woo the Muslim community, the @INCKarnataka government is going to give reservation in contracts as well, which will damage the health of a harmonious society," he said in a post on ‘X’.
He said it had become inevitable to protest against such stances of the Congress government.
Former Union Minister Rajeev Chandrasekhar alleged in his post on social media 'X' saying what seemed like "shameless appeasement politics" to be a "cover for Congress corruption machine".
ಮುಸ್ಲಿಂ ಸಮುದಾಯವನ್ನು ಓಲೈಸುವ ನಿಟ್ಟಿನಲ್ಲಿ ಸರಣೀ ರೂಪದಲ್ಲಿ ಹೆಜ್ಜೆಗಳನ್ನು ಇಡುತ್ತಿರುವ @INCKarnataka ಸರ್ಕಾರ ವಕ್ಫ್ ವಿವಾದದ ನಂತರ ಗುತ್ತಿಗೆಯಲ್ಲೂ ಮೀಸಲಾತಿ ನೀಡಲು ಹೊರಟಿರುವುದು ಸಾಮರಸ್ಯ ಸಮಾಜದ ಸ್ವಾಸ್ಥ್ಯ ಹಾಳುಮಾಡುವ ನಡೆಯಾಗಿದೆ.
— Vijayendra Yediyurappa (@BYVijayendra) November 12, 2024
ಪರಿಶಿಷ್ಟರಿಗೆ ಒಳ ಮೀಸಲಾತಿ ಹಾಗೂ ಜಾತಿ ಗಣತಿಯ ವಿವಾದಗಳು ನಮ್ಮ ಮುಂದಿರುವಾಗ ಮತ್ತೊಂದು… pic.twitter.com/1mnZqxpLpQ
