India’s retail inflation came down to 5.88% in November from 6.77% in October, government data released on Monday showed.
The retail inflation, which is measured by the Consumer Price Index, eased below the Reserve Bank of India’s upper tolerance level for the first time this year in November. The central bank aims to keep inflation between 2% and 6%.
The price rise indicator was 7.41% in September, 7% in August and 6.71% in July.
In November, consumer food price inflation eased to 4.67% from 7.01% in October, according to data released by Ministry of Statistics and Programme Implementation. The fuel and light inflation increased to 10.62% from 9.93% in the previous month, while inflation in clothing and footwear declined by 9.83% in November from 10.16% in October.
November’s retail inflation numbers reflect a base-effect led cooling in food inflation and a correction in vegetable prices, said Aditi Nayar, chief economist of rating agency ICRA, PTI reported.
Prices of vegetables contracted (-)8.08% on year in November while inflation in pulses and products grew by 3.15%. The inflation of spices saw a rise of 19.52% while cereals and products gained 12.96%. Inflation in milk was at 8.16%, compared with 7.69% in the previous month.
“Although there is easing in food prices, the core component continues to be irksome, with clothing and footwear, fuel and light and the miscellaneous categories witnessing high inflation of above 6% each,” Bank of Baroda Chief Economist Madan Sabnavis said.
On December 7, the Reserve Bank of India had also said that the worst of inflation is behind us, but warned of no room for complacency and hiked the repo rate by 35 basis points to 6.25%. The central bank had projected inflation to remain above 4% for the next 12 months.
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