Inflation climbed in November because prices of some food items and vegetables, which have a stronger influence on the headline inflation due to their high weight, rose sharply during the month.
India's retail inflation likely accelerated last month towards the upper limit of the Reserve Bank of India's target range as fruit and vegetable prices climbed, a Reuters poll found.
India s Retail Inflation Eases to 4.59% in December
Retail inflation based on the Consumer Price Index was 6.93% in November.
Representative image of a man shopping for food with his child. Photo: Reuters
Economy12/Jan/2021
New Delhi: Retail inflation fell sharply to 4.59% in December, mainly due to declining food prices, government data showed on Tuesday.
Retail inflation based on the Consumer Price Index (CPI) was 6.93% in November.
Food inflation declined to 3.41% in December in 2020, compared to 9.5% in the previous month, according to the data released by the Ministry of Statistics and Programme Implementation.
The Reserve Bank of India (RBI) factors in retail inflation while arriving at its monetary policy.