Urban inflation in October was driven by fuel and core inflation, which cumulatively occupy 65% weight in their commodity basket, says the report. Thus it can be surmised that the richest 20% faced facing more inflation than the poorest 20% because of rising core inflation and falling food inflation, says the agency. Going forward, Crisil expects retail inflation to average at 5.5% on-year this fiscal, down from 6.2% last fiscal as easing food inflation and high base effect are expected to bring down headline inflation on-year. On the other hand elevated input costs will continue to pressure core inflation, as producers will partially pass them on to end-consumers. On the other hand core inflation remained sticky at 5.9% the same as September, pushing urban inflation to 5% in October from 4.6% in September while rural inflation stayed stable at 4.1%, same as September.

Source: The Hindu November 13, 2021 04:36 UTC