Retail Inflation Eases to 5.48% in November, Shows Modest Improvement

Related Articles

Infosys Terminates 240 Trainees for Failing Internal Assessments, Report Says

5 hours ago

Mumbai Airport to Suspend Operations for 6 Hours on May 9 for Runway Maintenance

5 hours ago

Ashish Saraf Appointed Vice President and Head of India Operations at Pratt & Whitney

1 day ago

India’s retail inflation eased slightly to 5.48% in November, down from 6.21% in October, according to data released by the Ministry of Statistics and Programme Implementation on Thursday. While the pace of price increases has slowed, the Consumer Price Index (CPI)-based inflation remains well above the Reserve Bank of India’s (RBI) target of 4%, which allows a deviation of two percentage points on either side.

Food prices, which have been a major driver of inflation, continued to be elevated. In November, food inflation stood at 9.04%, a decrease from 10.47% in October. Cereal prices saw an increase of 6.88%, slightly lower than the 6.94% rise in October. Inflation in pulses also decreased to 7.43% from 9.81% in the previous month. Despite these reductions, food inflation remains a concern for households and policymakers alike.

Most analysts had anticipated a slight decline in retail inflation due to improving food supplies. However, the persistence of high food prices has been a major challenge for the Reserve Bank of India (RBI), which has made controlling inflation a top priority.

In response to the ongoing inflationary pressures, the RBI’s monetary policy committee kept the benchmark interest rate unchanged at 6.5% in its final meeting of the year. Despite a dip in economic growth, the RBI emphasized the need to manage inflation risks while supporting growth.

Outgoing RBI Governor Shaktikanta Das, in his final remarks, stated that achieving the right balance between inflation and economic growth is the central task for the central bank. As India moves into 2024, both inflation control and economic growth will remain at the forefront of the RBI’s priorities.

With food inflation continuing to affect the cost of living, the RBI’s monetary policy decisions will play a crucial role in shaping the country’s economic landscape in the coming months.

Sources By Agencies