Retail inflation in India slows to 5.48% in November, remains above RBI’s target
Sticky food inflation, which have knocked household budgets, has been a key concern of Reserve Bank of India
PTC Web Desk: Retail inflation in India increased to 5.48% in November, slower than the 6.21% rise recorded in October, according to data from the Ministry of Statistics and Programme Implementation released on Thursday. Although inflation grew at a slower pace, the Consumer Price Index (CPI)-based retail inflation remained above the Reserve Bank of India’s (RBI) 4% target, deviating by two percentage points on either side.
Food prices, which have been a significant driver of high inflation for several quarters, continued to rise, registering a 9.04% increase. However, this was lower than the 10.47% recorded in October.
Cereal prices rose by 6.88%, slightly lower than the 6.94% increase in October. Inflation in pulses stood at 7.43%, down from 9.81% the previous month. Many analysts had anticipated a slight decline in retail prices for November, given the improving food supply situation.
Persistent food inflation has been a major concern for the RBI, impacting household budgets. Despite a dip in economic growth, the RBI maintained its benchmark interest rate at 6.5% during its final monetary policy meeting of the year, citing ongoing inflationary risks.
Balancing inflation and growth remains a critical challenge for the RBI, as emphasized by outgoing Governor Shaktikanta Das in his final remarks on Tuesday.