Gold helped headline retail inflation, as measured by the Consumer Price Index (CPI), remain in positive territory in October, though it slipped to a multi-year low. At the same time, the impact of GST was much more than anticipated.

The National Statistics Office (NSO) reported retail inflation at 0.25 per cent in October, mainly due to the base effect, lower food prices, and the impact of GST. The print is lowest in the current series, with the base year of 2012. This series was formally introduced with effect from January 2015.

Gold lifts inflation

According to market sources, gold prices rose significantly in October, with the highest price for 10 grams of 24-carat gold reaching Rs 1.31 lakh. This impacted the headline inflation. An SBI research report said that CPI inflation incre

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