India’s retail inflation increased to 5.5% in November from 4.87% in October, government data released on Tuesday showed.
The price rise indicator was 5.02% in September, 6.83% in August and 7.44% in July. The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%.
Food inflation increased to 8.70% in November from 6.61% in October.
“The uptick was entirely driven by the food and beverages segment, with all other groups either reporting a lower or an unchanged inflation print in November relative to October,” rating agency ICRA’s Aditi Nayar told Reuters.
Inflation rate of vegetables showed a notable increase from 2.70% in October to 17.70% in November. The price rise for pulses also exhibited an increase from 18.79% in October to 20.23% in November. Fruit prices were up 10.95% in November from 9.34% in October, the data released on Tuesday showed.
This comes after the Reserve Bank of India’s Monetary Policy Committee on December 8 decided to keep the repo rate unchanged at 6.50% for the fifth consecutive time.
The repo rate is the interest rate at which the central bank lends money to commercial banks.
Central banks typically increase key lending rates at times of high inflation in economies. Higher key lending rates translate into high interest on loans disbursed by commercial banks. This, in turn, keeps a check on discretionary spending by consumers.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!