Core Inflation Drops to 7.5% in October

Core inflation in October fell to 7.5%, according to the latest data. This marks a continued decline in inflation rates, with urban areas seeing a reduction from 8.1% to 7.8%, while rural regions experienced a drop to 7.1%.

The non-energy and non-food inflation eased for the second consecutive month, reaching 7.5% in October. This development challenges the central bank's assumption that rising energy and food prices could influence core inflation, which was a key factor in its policy rate decisions.

The widening gap between core inflation and the policy rate has reached 4.5%, benefiting commercial banks but placing a financial burden on borrowers, particularly the finance ministry.