November retail inflation slows to 5.4% as vegetable prices easily fall below RBI tolerance limit

Retail inflation slowed to 5.48 percent in November from 6.21 percent in October, largely due to easing prices for food, especially vegetables, according to government data released on December 12. The latest figures are good with the RBI’s upper tolerance level at 6 percent.

NSO said: “During November 2024, a decline in inflation was observed in vegetables, nuts and sugar products and desserts, fruits, eggs, milk and groceries, transportation and communications and personal care and Affected groups “. In a statement.

Consumer inflation fell to 9.04 percent in November, according to the Consumer Price Index (CPI) data released by the National Bureau of Statistics (NSO). It was 10.87 percent in October and 8.70 percent in November 2023.

Retail inflation remains high, stubborn with the price of risky food, and often violates the RBI Monetary Policy Committee’s tolerance level of 2 percent to 6 percent. In October, retail inflation hit a shocking 14-month high of 6.21 percent, with vegetable inflation at a 57-month high of 42.2 percent.

Last week, the Reserve Bank raised its inflation forecast for the current fiscal year to 4.8 percent from 4.5 percent. It also said protracted food price pressures are likely to keep inflation heading higher in the December quarter.

Headline inflation, based on the Consumer Price Index (CPI), rose from an average of 3.6 percent during July to August to 5.5 percent in September and continued to 6.2 percent in October 2024.

In October, inflation rose to 6.2 per cent, exceeding the Reserve Bank of India's upper tolerance level of 6 per cent. This is the first time in 14 months since August 2023 that inflation has exceeded this level. This increase is mainly driven by higher food prices, especially vegetables.

Meanwhile, data from the Ministry of Statistics show that factory output, as measured by the Industrial Production Index (IIP), rose 3.5 percent from a year earlier (yoy) in October 2024. Manufacturing output rose 4.1 percent from a year earlier to 10.6 percent. During April-October, IIP rose 4 percent, down from 7 percent in the previous year.