NEW DELHI: The retail inflation or consumer price-based inflation (CPI) in November surged to 5.6% from 4.9% in October on account of high food prices, especially vegetable and pulses prices. Pulses prices surged to 20.23%, vegetables inflation reached 17.7%, and fruit prices rose by about 11% year-on-year during November.
Cereals inflation remained stubborn at 10.3% in November as against 10.7% in October, while meat and fish inflation fell to 2.15% from 3.3% in previous month. Milk inflation dropped to 5.75%, and egg prices grew 5.9%. Sugar and confectionary prices accelerated to 6.55%, while spices inflation slightly eased to 21.6%. Edible oil prices recorded a drop of 15% year-on-year in November.
As per the data released by the Ministry of Statistics & Programme Implementation (MoSPI), the consumer food price inflation (CFPI) rose to 8.7% in November as against 6.6% in the previous month and 4.6% in November last year.
The latest surge in inflation justifies the RBI’s cautious stance towards inflation. After the recently concluded monetary policy meet, RBI governor Shaktikanta Das had warned that intermittent vegetable price shocks could once again push up headline inflation in November and December Meanwhile, non-food prices rose at a slower pace, including clothing and footwear, education, healthcare, household goods and services, and housing. Fuel and light prices were below last year’s levels, while transport and communication prices increased slightly.
The core inflation (non-food, non-oil inflation), however, moderated to 4.1% in November compared to 4.3% in October. Dharmakirti Joshi, Chief Economist, CRISIL on the CPI and IIP data released today CPI Inflation said “The moderation in core inflation reflects lower input cost pressures on producers, which has reduced the need to raise retail prices.” “December CPI inflation estimate is tracking at 6.2% to 6.4%, as base-effect turns adverse,” says Gaura Sen Gupta, economist at IDFC First Bank.