Business: The apprehension of the Governor of the Reserve Bank of India has proved true. Due to the huge increase in the prices of vegetables, there has been a sharp jump in the retail inflation rate. According to the Consumer Price Index (CPI Index) released for September 2024, the retail inflation rate has crossed 5 percent in September 2024 and reached 5.49 percent, which was 3.65 percent in August 2024. The retail inflation rate was 3.54 percent in July 2024. The retail inflation rate has crossed the RBI's tolerance band of 4 percent. 

Food inflation rate was 9.24 percent 

The Ministry of Statistics and Program Implementation has released the retail inflation data for September 2024, according to which the Consumer Price Index has reached 5.49 percent in September 2024. The retail inflation rate in rural areas was 5.87 percent and in urban areas it was 5.05 percent. The ministry said that this sharp jump in retail inflation has happened due to high base effect and weather. In September 2024, there has also been a huge increase in food inflation and it has reached 9.24 percent. Food inflation rate in rural areas has been 9.08 percent and in urban areas it has been 9.56 percent. In August 2024, the food inflation rate was 5.66 percent. Earlier today, according to the wholesale inflation data released by the Ministry of Commerce, there has also been a jump in the wholesale inflation rate.    

Vegetable prices increased inflation 

According to the data of retail inflation released by the Ministry of Statistics, there has been a huge increase in the inflation rate of vegetables in the month of September. The inflation rate of vegetables in September was 35.99 percent, which was 10.71 percent in August. The inflation rate of milk and related products has increased and it was 3.03 percent in September, which was 2.98 percent in August. The inflation rate of pulses has decreased and it has come down to 9.81 percent as compared to 13.60 percent in August. The inflation rate of grains and related products has also decreased and was 6.84 percent in September, which was 7.31 percent in August. The inflation rate of sugar has come down to 3.46 percent, the inflation rate of eggs has come down to 6.31 percent. The inflation rate of meat and fish has come down to 2.66 percent. 

Hopes of cheap loans dashed

In September, the retail inflation rate has reached 5.49 percent, much above the RBI's tolerance band of 4 percent. Now the RBI's Monetary Policy Committee will meet in December 2024. And if the retail inflation rate does not come down to 4 percent in the next two months, then there is a strong possibility that RBI will provide relief from expensive loans by reducing the repo rate.