In September, RBI Governor Shaktikanta Das said acute imported inflation pressures felt at the beginning of this fiscal year have eased but it still remains elevated across food and energy items.Īs per the government data, the retail inflation in 'cereals and products', 'milk and products', vegetables, 'pulses and products' and spices were higher at 11.53 per cent, 7.13 per cent, 18.05 per cent and 3.05 per cent and 16.88 per cent respectively in September, higher than the preceding month. One of the RBI's main functions is to contain inflation at 4 per cent with a bias of 2 per cent on either side. The Reserve Bank of India Act mandates the central bank to show up with a report to the government as to why it failed to contain inflation within the targeted band. The central government has mandated RBI to ensure that retail inflation remains in the range of 2-6 per cent.

In the year-ago month, it was at a comfortable level of 4.35 per cent.

Official data released by National Statistical Office (NSO) on Wednesday showed that the retail inflation based on Consumer Price Index (CPI) was at 7.41 per cent in September as against 7 per cent in August. It is for the ninth month in a row that retail inflation has remained above the Reserve Bank of India's upper tolerance level of 6 per cent. Inflation in the food basket rose to 8.60 per cent in September from 7.62 per cent in August. New Delhi, Oct 12 (PTI) Retail inflation rose to a five-month high of 7.41 per cent in September mainly due to costlier food items, reason enough for the Reserve Bank to continue with its rate hike cycles it has resorted to since May 2022.

Mirc 7.41 update