The GST rate cuts brought down retail inflation by 85 basis points to a record low of 0.25 per cent in October and the declining trend is likely to continue in the coming months, according to experts.
The Consumer Price Index- (CPI-) based retail inflation was lowest in the current series (base year 2012), which captures data since January 2014.
CPI inflation increased in case of personal care and effects, owing to higher gold prices, at 57.8 per cent, an SBI research report said, adding that if if the precious metal is excluded, headline CPI turns the print negative at -0.57 per cent year-on-year.
“We believe, given the current trend, CPI, excluding gold, would remain negative even in the next two months,” the ‘SBI Ecowrap’ said.
GST rationalisation, which came into effect from September 22, has also led to reduction in CPI inflation.
“We earlier estimated that CPI will moderate by 65-75 bps owing to GST. However, the decline in CPI inflation due to GST has been higher at around​The GST rate cuts brought down retail inflation by 85 basis points to a record low of 0.25 per cent in October and the declining trend is likely to continue in the coming months, according to experts.
The Consumer Price Index- (CPI-) based retail inflation was lowest in the current series (base year 2012), which captures data since January 2014.
CPI inflation increased in case of personal care and effects, owing to higher gold prices, at 57.8 per cent, an SBI research report said, adding that if if the precious metal is excluded, headline CPI turns the print negative at -0.57 per cent year-on-year.
“We believe, given the current trend, CPI, excluding gold, would remain negative even in the next two months,” the ‘SBI Ecowrap’ said.
GST rationalisation, which came into effect from September 22, has also led to reduction in CPI inflation.
“We earlier estimated that CPI will moderate by 65-75 bps owing to GST. However, the decline in CPI inflation due to GST has been higher at around ​Latest News [ SOBAN NEWS: International and National ]
