India’s retail inflation eased to 5.48 percent in November, down from 6.2 percent in the previous month of current fiscal year. According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), inflation in rural areas stood at 5.95 percent compared to 4.83 percent in urban regions.
The food inflation rate for November 2024, based on the All India Consumer Food Price Index (CFPI), is provisionally reported at 9.04 percent, down from 10.9 percent recorded in October. Corresponding inflation rate for rural and urban areas stood at 9.1 percent and 8.74 percent.
According to MoSPI, the ease in inflation in November 2024 is mainly due to decline in inflation in food and beverages group. The data added that significant decline in inflation is observed in Vegetables, Pulses and Products, Sugar and Confectionary, Fruits, Eggs, Milk and products, Spices, transport and communication and Personal care and effects subgroups.
India’s retail inflation remained under the central bank’s target in November. The Reserve Bank of India (RBI) aims to keep inflation within a range of 2 to 6 percent, with a medium-term target of 4 percent.
RBI’s Monetary Policy Committee (MPC) last week had increased its inflation estimates to 4.8 percent from 4.5 percent for the same period, highlighting concerns over food inflation. The MPC had retained its neutral stance, signalling room for potential rate cuts if inflationary pressures ease in the coming months.
