What's the story

India's retail inflation fell to a multi-year low of 1.54% in September, down from August's two-month high of 2.07%. The last time the country saw such low inflation was in June 2017. The decline is mainly due to a sharp drop in food and beverage prices, which have seen a disinflationary trend.

Inflation trends

Food inflation at 81-month low

The Consumer Price Index (CPI) inflation rate for September stood at 1.54%, with food and beverages contributing significantly to this decline. The food inflation rate fell to an 81-month low of -2.28%. However, other categories such as miscellaneous items saw a rise in year-on-year (YoY) inflation rates, with gold and silver prices hitting new highs in October.

Forecast adjustment

RBI lowers inflation forecast

Earlier this mo

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