Retail Inflation in India Decreases to 5.48% in November
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New Delhi, Dec 12 (NationPress) India's retail price inflation based on the Consumer Price Index (CPI) has dropped to 5.48% in November as the rise in food prices has moderated, offering relief to household finances, as reported by the Ministry of Statistics on Thursday.
This decrease signifies a departure from the prior trend where inflation escalated over the last two months, peaking at 6.21% in October.
“In November, a marked reduction in inflation was noted in various categories including vegetables, pulses, sugar and confectionery, fruits, eggs, milk and its products, spices, transport and communication, and personal care items,” stated the official announcement.
The top five commodities exhibiting the highest year-on-year inflation at the national level in November are garlic (85.14%), potato (66.65%), cauliflower (47.70%), cabbage (43.58%), and coconut oil (42.13%), according to official data.
The items with the lowest year-on-year inflation in November 2024 include zeera (-35.04%), ginger (-16.96%), LPG used for cooking (-10.24%), and dry chillies (-9.73%).
The reduction in inflation is a positive development, marking the first instance where the retail inflation rate exceeded the RBI's upper limit of 6% in October. The RBI is anticipating retail inflation to stabilize at 4% on a sustainable basis before considering any interest rate reductions aimed at enhancing growth.
On Friday, the Reserve Bank of India (RBI) reduced the cash reserve ratio (CRR) for banks by 0.5% to increase the availability of funds for lending and stimulate economic growth while keeping the key policy repo rate steady at 6.5% to monitor inflation.
The CRR has been lowered from 4.5% to 4%, which is expected to inject Rs 1.16 lakh crore into the banking sector and decrease market interest rates.
This monetary policy decision strikes a careful balance between managing inflation while also fostering growth within a sluggish economy.
In his last monetary policy address, former RBI Governor Shaktikanta Das remarked, “India's growth narrative remains robust. Inflation is on a downward trajectory, yet we must remain vigilant about considerable risks in the outlook. Such risks should not be underestimated,”
He expressed optimism about the economic outlook, noting that “the equilibrium between inflation and growth is well positioned.”
