November Retail Inflation Eases To 5.48%, Industrial Output Grows 3.5% In October

The Reserve Bank of India (RBI) aims to maintain inflation within a target range of 2-6 per cent, with a medium-term goal of 4 per cent

Rural areas saw a CFPI inflation rate of 9.1 per cent, while urban regions experienced a slightly lower rate of 8.74 per cent

Source : Pexels

The Consumer Price Index (CPI)-based retail inflation eased to 5.48 per cent in November, down from a 14-month high of 6.21 per cent in October, reflecting ongoing price pressures across various sectors, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday.

The data reveals that inflation was higher in rural areas at 5.95 per cent, compared to 4.83 per cent in urban regions.

The Reserve Bank of India (RBI) aims to maintain inflation within a target range of 2-6 per cent, with a medium-term goal of 4 per cent.

Food inflation remained elevated in November, though it showed signs of slowing. The Consumer Food Price Index (CFPI) stood at 9.04 per cent, down from 10.87 per cent in October, primarily driven by high prices for vegetables, fruits, oils, and fats.

Rural areas saw a CFPI inflation rate of 9.1 per cent, while urban regions experienced a slightly lower rate of 8.74 per cent.

Housing inflation rose to 2.87 per cent in November, up from 2.81 per cent in October. The housing index is calculated exclusively for urban areas.

India's retail inflation reached a peak of 7.79 in April 2022 but eased after the RBI's monetary policy committee increased rates and the government implemented measures to boost supplies. However, rising food prices have diminished the purchasing power of lower-income households, significantly impacting festive season sales this year.

At the same time, India's industrial output increased to 3.5 per cent in October, up from 3.1 per cent in September, primarily driven by a recovery in the manufacturing and electricity sectors.

Speaking on the numbers, Akhil Mittal, Senior Fund Manager - Fixed Income, Tata Asset Management, said, "CPI inflation for the month of November 2024 has come at 5.48% versus market expectation of 5.50%. Food inflation declined month on month and came at 9.04%, while core inflation remained anchored at 3.7%. We expect softening in food price inflation to continue as winters set in. We expect inflation may fall towards 5.2-5.3 for December 2024. With inflation expected to soften going ahead, it opens up space for RBI for policy easing to support growth."