Rewind 2024: Inflation

Retail inflation slowed to 5.48 per cent in November compared to 6.21 per cent in October, which recorded a 14-month high driven by high food prices as well as geopolitical disruptions that have severely affected global supply chains. RBI hiked the FY25 inflation forecast to 4.8 per cent in view of slowdown in economic activity as well as stubborn food prices. Inflation is hovering higher than the RBI’s target of four per cent (with a leeway of 2 percentage points on either side).

Inflation increased sharply in September and October 2024, led by an unanticipated increase in food prices. Core inflation, though at subdued levels, also registered a pickup in October. However, fuel growth remained in deflation for the 14th consecutive month in October.

The CPI-based headline inflation increased from an average of 3.6 per cent during July-August to 5.5 per cent in September and further to 6.2 per cent in October 2024, the highest in more than a year since September 2023. RBI raised the inflation projection for the current fiscal to 4.8 per cent from 4.5 per cent.