economy

Consumer price index hardens to 4.91% in November

Consumer price index hardens to 4.91% in November

NEW DELHI : Consumer price index (CPI) which measures India’s retail inflation hardened to 4.91% in November 2021 compared to 4.48% seen in October, owing to rising food prices which neutralised the effect of a cut in fuel taxes. The index remains within the Reserve Bank of India’s target band of 2-6% for a fifth consecutive month. Last week, the RBI retained CPI inflation projection for FY22 at 5.3%. In November 2020, the index was much higher at 6.93%. Data from the ministry of statistics and progamme implementation showed that rise in the inflation for food and beverages, housing, and clothing and footwear had outpaced the moderation in the CPI inflation for fuel and light, pan, tobacco and intoxicants, and other miscellaneous items. Consumer food price index firmed to 1.87% for the month of November, compared to 0.85% for October 2021. “With input price pressures forcing producers to raise prices in many sectors, the November 2021 CPI inflation accelerated slightly faster than we had expected, shrugging off the favourable base effect and the cut in fuel taxes, said Aditi Nayar, chief economist at ratings agency ICRA. The impact of fuel tax cuts had helped to douse the transport and communications sub-index by 0.6% in November 2021 in month-on-month terms, but all the other categories of miscellaneous items displayed a hefty MoM rise, ranging from 0.2% for education to a sharp 0.9% for personal care and effects, underscoring the growing price pressures in the economy, the firm said. “In our assessment, as long as the CPI inflation remains within the target of 2-6%, the MPC and RBI will prefer to prioritize growth, and maintain policy support to impart durability and sustainability to the recovery, Nayar added. Download.

economy 2021-12-13 Livemint