CPI Inflation Sees Modest Uptick To 4.5% In October

Retail inflation saw a modest pick up in October after falling for four straight months.

Consumer Price Index inflation stood at 4.48% in October 2021 compared to 4.35% in September, according to data released by the Ministry of Statistics and Program Implementation on Friday. Despite the modest up tick, it remains well within the monetary policy committee's target range of 4(+/-2)%.

A Bloomberg poll of 36 economists had estimated inflation at 4.41% for October 2021. A strong base effect has partly helped bring down headline inflation even as input cost pressures remain strong.

Inflation in the food and beverages category rose to 1.82% from 1.61% last month.

Inflation Internals (Year-On-Year)

• Inflation in oils and fats was at 33.5%, compared with 34.2% on an annual basis in September 2021.

• Inflation in the pulses category was at 5.42%, compared with 8.8% last month.

• Vegetables continued to see disinflation, with prices falling 19.42% after falling by 22.5% in the preceding month.

• Clothing and footwear inflation was at 7.53%, compared with 7.2% last month.

• Housing inflation stood at 3.54%, compared to 3.6%, in the previous month.

• Fuel and light inflation stood at 14.35%, compared with 13.6% last month.

• Inflation in transport and communication was at 10.9%, compared with 9.53% in September.