India’s inflation rate has continued its downward trend, marking the third consecutive month of decline in October. This brings it in line with the target set by the country’s central bank.
According to preliminary government figures released on Monday, consumer prices rose by 4.87% compared to the same month last year, slightly lower than the 5.02% recorded in September. These numbers fall just short of economists’ expectations, who predicted a 5.0% rise, similar to the inflation rate witnessed back in June.
In terms of specific sectors, food-and-beverage prices experienced a slight easing in October, with the inflation rate standing at 6.24% compared to 6.30% in September. Meanwhile, clothing and footwear prices saw a 4.31% increase compared to a year ago, while fuel prices decreased by 0.39% on a yearly basis.
This overall decrease in inflation brings the nation closer to the Reserve Bank of India’s target of 4%. It also alleviates some of the pressure on the central bank, which opted to maintain its key interest rate at 6.5% last month after gradually raising it from 4.0% in May 2022 until earlier this year.