New Delhi: Retail inflation in September dropped to 13-month low of 4.31 percent mainly on account of easing vegetables prices.
Retail inflation, measured by Consumer Price Index (CPI), was 5.05 percent in August. It was 4.41 percent in September 2015.
The previous low of 3.74 percent was recorded in August last year.
The Reserve Bank takes into account retail inflation while deciding on its key lending rate. It has been mandated to contain inflation at 4 percent, within 2 percent range on either side.
As per data released by the government, inflation in vegetable segment was in the negative, contracting 7.21 percent. The vegetable inflation was 1.02 percent in August.
Similarly, the pulses prices too were subdued last month as also of egg and milk (and its products). Inflation in case of meat and fish basket was 5.83 percent in September, marginally down over the previous month.
However, fruits became dearer in last month over the previous months.
Overall, the Consumer Food Price Index was down at 3.88 percent compared with 5.91 percent in August.
The CPI based inflation in fuel and light segment was up at 3.07 percent in September in comparison to 2.49 in August.
The data released by the Ministry of Statistics and Programme Implementation further said retail inflation in urban areas was 3.64 percent in September as against 4.22 percent in the previous month.
Rural retail inflation was 4.96 percent in comparison to 5.87 percent in August.