There has been a big relief on the inflation front. According to the data released by the government, the retail inflation rate has come down to 5.88 percent in November. In November, the retail inflation rate has come down from 6.7 percent to 5.88 percent. Earlier in September it was 7.4 percent. This number has been seen within the tolerance band of 2-6 percent of the Reserve Bank of India (RBI) for the first time after 10 consecutive months.
The central government has ordered the RBI to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for a period of five years ending March 2026. Analysts in a poll had predicted annual inflation of 6.40 per cent this month.
Food inflation, which forms almost half of the CPI basket, eased to 4.67 per cent in November, compared to 7.01 per cent in the previous month.
The November inflation data comes days after the RBI’s monetary policy committee raised the repo rate by 35 basis points to 6.25 per cent on December 7, its fifth increase in eight months. As per the latest RBI forecasts, retail inflation seen at an average of 6.6 per cent in October to December will come down to 5.9 per cent in January to March next year and 5 per cent in April to June 2023.
Why the decline
Due to the decrease in the inflation rate of food items, a decline has been registered in the retail inflation rate. The retail inflation rate in urban areas was 6.53 per cent in October, which has come down to 3.69 per cent in November. Talking about the same rural areas, the retail inflation rate was 7.30 percent in October, which has come down to 5.22 percent in November.
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