Due to cheaper food items, retail inflation softened in October and stood at a four-month low of 4.87 percent.
Consumer price index-based retail inflation stood at a three-month low of 5.02 per cent in September, according to government data released on Monday.
The Monetary Policy Committee (MPC) of the Reserve Bank of India in its October meeting has estimated retail inflation to be 5.4 percent in the current financial year 2023-24. This is less than 6.7 percent in 2022-23.
The government has given the responsibility to RBI to keep the retail inflation rate at four percent with a variation of two percent. The central bank mainly looks at retail inflation while considering the bi-monthly monetary policy.