New Delhi

India’s imported inflation hit a 13-month peak in September 2024, rising by 2%, as reported by the State Bank of India (SBI). This increase is significantly influenced by soaring prices of gold, oils and fats, and chemical products, which are contributing to the overall inflation in the country.

Imported inflation refers to the rise in the price of goods and services due to the higher costs of imported items. The SBI report noted that the contribution of imported inflation to total inflation has been climbing, reaching this recent high. Specifically, India imported $10.06 billion worth of gold in September 2024, a substantial increase from $4.94 billion during the same month last year. This marks the highest gold import value recorded from January to September this year.

In August 2024 alone, gold imports surged by 103.7% in value compared to previous months. Meanwhile, India’s overall retail inflation rose to 5.5% in September, up from 3.65% in August, largely due to rising food prices. Food inflation surged to 8.36%, significantly impacting the overall inflation rate.

As India imports essential commodities like gold and edible oils, fluctuations in global prices are directly affecting domestic inflation levels. This trend underscores the challenges the Indian economy faces amid rising imported inflation.