New Delhi: Chhattisgarh witnessed the highest inflation rate among states and Union territories in October, followed by Bihar, highlighting the inflationary pressures across the country stoked by stubborn food prices.
The latest retail inflation data for October released by the National Statistical Office (NSO) showed Chhattisgrah recorded an inflation rate of 8.8%, while Bihar had a rate of 7.8%. Odisha was in third place with a rate of 7.5%, followed by Uttar Pradesh at 7.4% and Madhya Pradesh at 7%.
Out of the 22 states and UTs for which data is available, half of them recorded an inflation rate above 6%. Delhi had the lowest inflation rate of 4%, followed by West Bengal and Maharashtra. According to the latest data, retail inflation surged to a 14-month high of 6.2% in October, led by soaring food prices – particularly vegetables.
The retail inflation rate in October has breached RBI upper tolerance band of 6%, dashing hopes of any cut in interest rates for now. Vegetables, cereals, fruits, oils and fats have been identified as key factors behind the price surge.
Experts say there are several factors that influence the varying inflation rates across states, including supply issues. The sharp increase in retail inflation and wholesale price inflation, which rose to a four-month high of 2.4% in October largely led by high food prices, has triggered a debate with commerce minister Piyush Goyal calling upon the Reserve Bank of India to cut rates, arguing that targeting food price inflation through interest rates was an “absolutely flawed theory.” Earlier, RBI governor Shaktikanta Das had cautioned about upside risks to inflation from factors such as food prices and said a rate cut should not be taken for granted.
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