India’s Retail Inflation Lowers In November: Report

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Cheaper food prices lowered India’s sequential retail price inflation in November.

Sequentially, the Consumer Price Index (CPI), which gauges the retail price inflation, rose at a slower rate of 6.93 per cent in November from 7.61 per cent reported in October.

As per the data furnished by the National Statistical Office (NSO), CPI Urban rose to 6.73 per cent in November from 7.33 per cent in October, while CPI Rural increased to 7.20 per cent last month from 7.75 per cent in October.

The Consumer Food Price Index, increased at a slower rate of 9.43 per cent in November from 11 per cent in October.

The CFPI readings measure the changes in retail prices of food products.

On a YoY inflation rate, prices of vegetables and pulses and products jumped by 15.63 per cent and 17.91 per cent, respectively, in November.

“The headline CPI inflation for November 2020 printed appreciably lower than our expectations, benefiting from stable vegetable prices at the retail level,” said Aditi Nayar, Principal Economist, ICRA.

Sunil Kumar Sinha, Principal Economist, India Ratings and Research, said: “Retail inflation at 6.93 per cent is still outside the comfort zone of RBI. However, core inflation (non-food and non-energy) and core-core inflation (non-food, non-energy and transport & communication) are broadly stable in the range of 5-5.79 per cent and 4.72 per cent and 4.95 per cent respectively since May 2020.”

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