Retail inflation in India saw a slight uptick, reaching a four-month high of 5.69% in December 2023, primarily attributed to increased food prices, according to official data released on Friday.The inflation, based on the Consumer Price Index (CPI), stood at 5.55% in November 2023 and 5.72% in December 2022. Notably, in August 2023, inflation had touched a peak of 6.83%.
Food Basket Records a Significant Increase in December 2023
The National Statistical Office (NSO) data revealed that retail inflation in the food basket surged to 9.53% in December 2023. This marks an increase from 8.7% in the preceding month and a substantial rise from 4.9% in the same month the previous year.
RBI’s Inflation Target Challenges Amidst the Rise
The government has entrusted the Reserve Bank of India (RBI) with the responsibility of maintaining retail inflation at 4%, allowing for a margin of 2% on either side. The recent uptick poses a challenge to this target, requiring close monitoring and potential policy adjustments by the central bank.
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