Retail inflation falls to 11-month low of 5.88 per cent in November

-PTI/The Telegraph

In December 2021, the retail inflation stood at 5.66 per cent

Retail inflation dipped below the RBI's upper tolerance level of 6 per cent for the first time in 11 months in November as softening prices of food items brought relief but the central bank may wait for more data before pausing hikes in interest rates.

As per the data released by the National Statistical Office (NSO) on Monday, the consumer price index (CPI) based inflation declined for the second consecutive month to 5.88 per cent in November, from 6.77 per cent in October 2022. It was 4.91 per cent in November last year.

The RBI, which has hiked benchmark interest rates by 2.25 per cent in five tranches since May to contain price rise, had last week projected retail inflation coming below the upper tolerance threshold of 6 per cent in the January-March period.

ICRA Chief Economist Aditi Nayar said the CPI inflation unexpectedly slipped below 6 per cent in November, reflecting a base-effect led cooling in food inflation and a correction in vegetable prices.

Inflation in the food basket was 4.67 per cent in November, against 7.01 per cent in the previous month.

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