economy

Indias retail inflation rises to 3-month high in November

Indias retail inflation rises to 3-month high in November

Indias retail inflation has risen to a three-month high of 4.91 per cent in November, according to the data released today. This is the fifth month that the retail inflation has remained within the RBIs target band of 2-6 per cent. A Reuters poll of 39 economists forecasts November consumer price inflation at 5.10 per cent, higher than 4.48 per cent in October. The CPI (Consumer Price Index) inflation in rural India stood at 4.29 per cent in November, while it was 5.54 per cent in urban areas, the Ministry of Statistics & Programme Implementation said today. The retail inflation had risen to 4.48 per cent in October from 4.35 per cent in September. Among various segments, oils and fats saw an inflation rate of 29.67 per cent, followed by fuel and light at 13.35 per cent, and transport and communication at 10.02 per cent. Household goods and services saw 6.41 per cent inflation in November, while clothing and footwear recorded 7.94 per cent inflation. Non-alcoholic beverages also saw an inflation rate of 9.65 per cent. Last month, on Diwali eve, the Centre had announced excise duty cut on petrol and diesel by ₹5 and ₹10, respectively. Many state governments had also cut VAT on the fuel, bringing down fuel prices further. Last week, the Reserve Bank of India left interest rates on hold but the central bank said price pressures may persist in the near term. The MPC voted unanimously to maintain the status quo on the repo rate and by a majority of 5-1 to retain the accommodative policy stance. The MPC retained its full-year economic growth projection at 9.5 per cent and also kept its retail inflation outlook unchanged at 5.3 per cent. Indias economy expanded 8.4 per cent in the September quarter from a year earlier, the fastest pace among major economies, but economists say the pandemic situation is a wild card. Industrial output data released last week showed Indias industrial activity growth remained subdued for the second straight month and expanded by 3.2 per cent in October, mainly due to the waning low base effect while mining, power and manufacturing sectors performed well. Download.

economy 2021-12-13 Livemint