Retail inflation falls to 6.93 per cent in November, four per cent higher than RBI target

New delhi date. Monday, December 14, 2020

Retail inflation, as measured by the Consumer Price Index (CPI), declined to 6.93 per cent in November 2020, according to data released by the Union Ministry of Statistics and Program Implementation. Despite lower inflation in November, it is still above the RBI's target of 6 per cent.

CPI-based retail inflation stood at 7.61 per cent in October, 2020. The Reserve Bank of India changes interest rates during the monetary policy review, keeping in view retail inflation.

Generally, if the inflation is low, the interest rate is reduced and if the inflation is high, the interest rate will be kept unchanged. The monetary policy review released by the RBI earlier this month did not see any reduction in interest rates.

Food inflation eased to 9.43 per cent in November. Food inflation was 11 per cent in October. Rising egg prices have led to a rise in food inflation. Egg prices rose by 202.6 per cent in November. Apart from eggs, edible oil prices also rose by 17.86 per cent.

November saw a rise of 17.86 per cent in hardened prices, 16.67 per cent in fish and 15.63 per cent in vegetables. According to experts, retail inflation is likely to decline in the coming months. Retail inflation stood at 5.3 per cent in November, 2019.

Wholesale price index (WPI) inflation stood at 1.55 per cent in November, despite a sharp rise in food prices. Which is the highest level in the last nine months. Inflation based on Wholesale Price Index (WPI) was 1.48 per cent in October, 2020. In November, 19-19, WPI inflation was 0.58 per cent.

November, 2020 wholesale price based inflation is the highest since February, 2020. Wholesale price-based inflation stood at 2.26 per cent in February, 2020. Wholesale prices fell to a nine-month high in November 2020 on account of lower prices of food items but rising prices of manufacturing items.

In November, 2020, vegetable prices rose by 12.24 per cent and potatoes by 115.12 per cent. Prices of non-food items rose 8.43 per cent. Fuel and electricity sector prices fell by 9.87 per cent. The RBI did not change interest rates during its monetary policy review earlier this month to boost economic growth.