India’s retail inflation touches 3-year high of 5.54%

The surge in inflation was on account of rising food prices.
India’s retail inflation touches 3-year high of 5.54%
India’s retail inflation touches 3-year high of 5.54%
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A massive rise in food prices lifted India's November's retail inflation to 5.54% from 4.62% in October, official data showed on Thursday. This is reportedly the highest in 40 months. In July 2016, retail inflation was at 6.07%.

Similarly, on a year-on-year (YoY) basis, the Consumer Price Index (CPI) last month was higher than the corresponding period of last year when retail inflation stood at 2.33%.

According to the data furnished by the National Statistical Office (NSO), the Consumer Food Price Index (CFPI) inflated to 10.01% during the month under review from an expansion of 7.89% in October 2019 and (-) 2.61% rise reported for the corresponding period of last year.

The data assumes significance as the Reserve Bank in its latest monetary policy review maintained the key lending rates on account of rising retail inflation.

The prices of vegetables saw a whopping 35.99% increase in November 2019. Inflation for pulses and products was at 13.94% and 3.46% for milk and products. Overall, inflation of food and beverages jumped to 8.66% in November 2019 as compared to 6.93% last month. Inflation in meat and fish was at 9.38%.

Within vegetables, onion prices reportedly spiked by over 400% since March this year.

Retail food prices increased to 10.01% in November as compared to a 7.89 % increase in October.

Accordingly, the apex bank in the monetary policy statement predicted the CPI-based inflation to rise in the coming quarters.

Significantly, the data indicated that retail inflation level has breached the medium-term target for consumer price index (CPI) inflation of 4% with a band of +/- 2%.

With IANS inputs

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