India Inflation Eases To 1.54%, Lowest Since June 2017

(RTTNews) - India's consumer price inflation eased more-than-expected in September to the lowest level in more than eight years, official data revealed on Monday.

Consumer price inflation slowed to 1.54 percent in September from 2.07 percent in August. Economists had expected inflation to moderate to 1.70 percent.

Further, this was the weakest inflation since June 2017, when prices rose 1.46 percent.

The Reserve Bank of India aims to keep inflation in a 2-6 percent tolerance band. During its last meeting earlier this month, the RBI decided to hold rates at 5.5 percent.

The fall in food prices deepened to 2.28 percent in September, the lowest since December 2018, from 0.64 percent in August. The fall was mainly attributed to a favorable base effect and to a decline in the inflation of vegetables, oil and fats, fruits, pulses and products, cereals and products, eggs, fuel and light, etc.

The annual price growth in fuel and light slowed to 1.98 percent from 2.32 percent, and that in transport and communication eased to 1.82 percent from 1.94 percent. At the same time, housing inflation rose to 3.98 percent from 3.09 percent.

On a monthly basis, consumer prices edged up 0.1 percent.