Retail inflation of India has been eased to 5.88% in November 2022 from 6.77% in October. It is the first time in this Financial Year when the inflation rate came within the tolerance band of RBI i.e. 2 to 6%. Food prices, which account for nearly 40% of the CPI basket, eased to 4.67% in November, compared with 7.01% in October.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
Other important points:
- Retail inflation has been above the upper end of the Reserve Bank of India’s 2%-6% tolerance band since January, triggering 225 basis points of interest rate rise, so far taking it to 6.25%.
- Excluding the volatile food and energy components, the core inflation is estimated to be between 6% and 6.26% in November, according to three economists’ estimates, compared to 5.9% to 6.3% in October.
- RBI recently wrote a letter to the government explaining the reasons for failing to contain inflation within the set band for three successive quarters. The letter has not been made public so far.
- Cooling vegetable and edible oil prices drove India’s retail inflation down to 5.88% in November from 6.77% in October, the first time since January this year that consumer prices have risen slower than the 6% tolerance threshold set for the central bank.
- Food price inflation faced by consumers eased to an 11-month low of 4.67% from over 7% in October, but rural consumers faced a greater burden with a 5.2% price rise in food items, compared to just 3.7% for their urban peers. Overall rural retail inflation also stayed high at 6.09%.
Find More News on Economy Here
National Mathematics Day 2024: Celebrati...
Current Affairs Flash 22nd December Base...
Ukraine Strikes Russian High-Rises in Ka...
