During November retail inflation in India reached a three-month high of 5.55 percent, due to a hike in food prices, say officials. Reserve Bank of India must keep inflation at 4%.
Food costs drove retail inflation to a three-month high of 5.55 percent in November, according to government numbers released Tuesday (December 12). CPI-based retail inflation was 4.87 percent in October. After August’s 6.83 percent peak, inflation decreased.
Last November, retail inflation was 5.88 percent.
The NSO announced an 8.7% food basket price increase, up from 6.61 and 4.67 in October and November 2022.
The government asked the RBI to manage retail inflation at 4% with a 2% buffer.
In its monetary policy issued last week, the RBI predicted 2023-24 CPI inflation at 5.4%, including 5.6% in the third quarter and 5.2% in the fourth.
Conclusion
The Indian government said that food prices propelled November retail inflation to a three-month high of 5.55 percent. In October, CPI inflation was 4.87 percent. In November 2022, food prices jumped 8.7%, up from 6.61 and 4.67 percent in October and November. The RBI must sustain retail inflation at 4% with a 2% cushion.
