Retail inflation rose from 3.65% in August to 5.49% in Sept

CPI inflation: Retail inflation in the month of September came in at 5.49 per cent largely in line with expectations of the economists, the government data showed on Monday.  The retail inflation in September is the highest in the last 9 months.

The retail inflation has gone up from 3.65 per cent  in August to 5.49 per cent in September owing to the spike in vegetable prices and base effect. This is after June when retail inflation has overshot RBI ’s medium-term target of 4 per cent.

The vegetable inflation has come in at 35.55 per cent in September against 10.71 per cent in August.

The Reuters poll for the month of September showed that inflation is expected to go to 5.04 per cent . Similarly, core inflation which strips volatile components such as food and fuel was projected to be around 3.50 per cent in September.