Retail inflation surged to a three-month high of 5.50 percent in November. How was food inflation?

Consumer Price Index (CPI) inflation stood at 4.87 percent in October.- India TV Paisa
Image: File Consumer Price Index (CPI) inflation stood at 4.87 percent in October.

Retail inflation has reared its head again. The country’s retail inflation data for the month of November shows this. Retail inflation hit a three-month high of 5.55 percent in November, driven by a rise in food prices. The National Statistics Office (NSO) released data on retail inflation on Tuesday. Let us tell you that inflation based on Consumer Price Index (CPI) was 4.87% in October.

Food inflation is on the rise

According to the news, a trend of reduction in the inflation rate has been seen since last August. Then it was 6.83 percent. Similarly, retail inflation was at the level of 5.88 percent in the same month last year. According to official data, the inflation rate of food items reached 8.7 percent in the month of November, which was 6.61 percent in October and 4.67 percent in November last year.

There is a challenge for the RBI.

The latest inflation data will be challenging for the Reserve Bank of India. RBI primarily looks at retail inflation while considering monetary policy. It is liable to be kept at four percent with a margin of two percent. In its monetary policy review last week, the RBI projected consumer inflation at 5.4 percent in the current fiscal. Earlier on Monday, Finance Minister Nirmala Sitharaman had said that retail inflation is now stable. At times, a temporary rise in the inflation rate occurs due to supply and demand mismatch due to global impact and adverse weather conditions.

He said India’s retail inflation has eased from an average of 7.1 percent in April-October 2022 to 5.4 percent in the same period in 2023. Retail inflation is now stable and within the notified benchmark of between 2 percent and 6 percent.

Latest business news.

Leave a Comment