NEW DELHI, Oct. 13 -- India's retail inflation cooled to 1.54% in September from 2.07% the previous month, marking the lowest reading since June 2017, due to the statistical effect of a favourable base and driven by lower prices of vegetables and pulses. Core inflation, on the other hand, shot up to a two-year high of 4.43% due to a sharp surge in prices of gold and silver ahead of the festive season.

This is broadly in line with the economists' projection of 1.5% in a Mint poll. With this, inflation has slipped below the lower tolerance limit of the Reserve Bank of India's (RBI's) 2-6% target band for the second time in three months. However, since this is largely driven by the base effect, it is unlikely to be a cause for concern.



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