Due to fall in food prices, retail inflation has declined in the month of October and it has reached a four-month low of 4.87 percent. According to data released by the government on Monday, consumer price index-based retail inflation was at a three-month low of 5.02 percent in September.

Earlier, the inflation rate in June was recorded at 4.87 percent. The Monetary Policy Committee (MPC) of the Reserve Bank of India in its October meeting has estimated retail inflation to be 5.4 percent in the current financial year 2023-24. This is less than 6.7 percent in 2022-23.

The government has given the responsibility to RBI to keep the retail inflation rate at four percent with a variation of two percent. The central bank mainly looks at retail inflation while considering the bi-monthly monetary policy.