CPI Inflation Comes Down To 6.46% For September
After some disappointing IIP numbers there is some good news in the inflation front. Inflation measured by consumer price inflation (CPI) has eased for a second straight month in September to 6.46% as against 7.8% in August.
The fall in the inflation was largely led by the fall in food price inflation, which came down to 7.67% for the month of September as compared to 9.35% in the month of August. The vegetable price inflation fell drastically to 8.59% versus 15.15% in the same time. Clothing, Bedding, Footwear inflation was reported at 7.59% versus 8.5% in August
Inflation rates based on CPI (General) and CFPI
| Indices | September 2014 (Prov.) | August 2014 | September 2013 |
| Rural | Urban | Combd. | Rural | Urban | Combd. | Rural | Urban | Combd. |
| CPI (General) | 6.68 | 6.34 | 6.46 | 8.27 | 7.04 | 7.73 | 9.71 | 9.93 | 9.84 |
| CFPI | 7.78 | 7.45 | 7.67 | 9.75 | 8.40 | 9.35 | 11.79 | 11.50 | 11.75 |
Note: Combd. – Combined; Prov. – Provisional; CFPI –Consumer Food Price Indices
The wholesale price index (WPI) data will be released on 14th October 2014
Though CPI has come down to all time (since 2012, from when it is calculated) it is still above the comfort zone of RBI and hence we feel any rate cut will still take some time.