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Retail inflation: The retail inflation rate data has come and it has come down slightly compared to October, which can provide relief. On the inflation front, the retail inflation rate has been slightly lower in November. In November, the retail inflation rate stood at 5.48 percent and in the previous month i.e. October, the retail inflation rate had gone up to 6.21 percent, which was more than the standard set by the Reserve Bank. This data has come according to the data of the Ministry of Statistics and Implementation.
The main reason is the decline in food inflation rate.
The main reason for the decline in inflation rate is being said to be the softening of prices of food items, especially vegetables. According to the Consumer Price Index (CPI) data released through the National Statistical Office (NSO), the inflation rate of food items has declined to 9.04 percent in November. It was 10.87 percent in October and 8.70 percent in November 2023. NSO said that in November 2024, a significant decline has been recorded in the inflation rates of vegetables, pulses, sugar and sweets, fruits, eggs, milk, spices, transport and personal care products.
CPI inflation increased during July-August
CPI-based overall inflation has increased from an average of 3.6 percent during July-August to 5.5 percent in September and 6.2 percent in October, 2024. This is the highest since September 2023.
This print of food items in November is a relief from being less than 10.47 percent in October. After rising by 6.94 percent in October, grain prices increased by 6.88 percent in November. The inflation rate of pulses stood at 7.43 percent in November as compared to 9.81 percent last month.
RBI had increased the cash reserve ratio
In the decisions of the Monetary Policy Committee earlier this month, RBI kept the interest rates stable, but has reduced the cash reserve ratio for banks to support growth. The recent decline in vegetable prices can be attributed to the bumper summer crop supported by favorable monsoon rains.
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