Retail inflation eases to 5.48% in November as food prices stabilise – The Tribune-OxBig News Network

The Consumer Price Index (CPI) inflation moderated to 5.48 per cent in November from a 14-month high of 6.21 per cent in October, mainly due to easing food prices, driven by a decline in vegetable prices, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).

“During November, a significant decline in inflation was observed in vegetables, pulses and products, sugar and confectionary, fruits, eggs, milk and products, spices, transport and communication and personal care and effects subgroups,” the data states.

Due to persistent high food prices and weakened consumption, last week, the Reserve Bank of India (RBI) raised its inflation forecast for the current fiscal year to 4.8 per cent from 4.5 per cent.

“While food inflation eased slightly due to a decline in vegetable prices, which showed sequential moderation, food inflation remained elevated due to higher edible oil prices. At the same time, core inflation displayed an uptick, warranting attention,” Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares and Stock Brokers, said.

The data states that food inflation remained high in November, although it slowed during the month, with the Consumer Food Price Index standing at 9.04 per cent compared to 10.87 per cent in October, driven largely by high prices of vegetables, fruits, oils and fats.

According to economists, edible oils inflation is at a 30-month high of 13.3 per cent and is being driven by global supply disruptions and the increase in import duties.