India’s CPI Inflation Soars to 14-Month High at 6.2% in October 2024; Witness the Dramatic Surge with IIP Growth at 3.1% in September
India’s CPI Inflation Reaches 14-Month High in October 2024; Industrial Production Sees Modest Growth
India’s Consumer Price Index (CPI) inflation surged to a 14-month high of 6.21% in October 2024, exceeding the Reserve Bank of India’s (RBI) upper tolerance limit of 6%. This marks a significant increase from the 5.49% recorded in September 2024 and 4.87% in October 2023. The RBI aims to maintain inflation at 4% with a margin of 2% on either side. Despite the elevated inflation, the RBI recently decided not to alter the key short-term lending rate.
A major contributor to the rising inflation was food prices, with food inflation jumping to 10.87% in October from 9.24% in September 2024, and up from 6.61% in October 2023. Rural areas witnessed higher inflation at 6.68% compared to urban regions, which experienced a rise of 5.62%.
Turning to industrial performance, India witnessed a 3.1% growth in industrial production in September 2024, according to the Index of Industrial Production (IIP). This development marks a recovery from a marginal decline of 0.1% in August 2024. However, the growth rate fell short of the 6.4% seen in September 2023. Sector-wise, mining, manufacturing, and electricity grew by 0.2%, 3.9%, and 0.5% respectively during September 2024. From April to September 2024, the cumulative industrial growth stood at 4%, a moderation from the 6.2% observed in the same period the previous year.
This latest data highlights the ongoing challenges faced by the Indian economy, balancing rising inflation with the need for sustained industrial growth. As policymakers keep a close watch on these indicators, future decisions by the RBI will be critical in steering the economy through these turbulent times.
Original Story https://www.news18.com/business/economy/indias-cpi-inflation-in-october-2024-jumps-to-14-month-high-of-6-2-iip-grows-3-1-9117781.html
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