Retail inflation rate for November fell to 5.4% as vegetable prices fell, falling within the limit permitted by the Reserve Bank of India.

Retail inflation slowed to 5.48% in November compared to 6.21% in October, mainly due to lower food prices, especially vegetables, according to government data released on December 12. The latest figures are in line with the upper tolerance level set by the Reserve Bank of India of 6%.

“During November 2024, a significant decrease in inflation was observed in the groups of vegetables, legumes and their products, sugar, confectionery, fruits, eggs, milk and its products, spices, transport and communications, personal care and antiquities,” the statistics said. In a statement.

According to Consumer Price Index (CPI) data released by the National Statistics Office (NSO), food inflation fell to 9.04 percent in November. It reached 10.87 percent in October and 8.70 percent in November 2023.

Retail inflation remained stubbornly high, with food prices causing chaos and frequently violating the RBI’s Monetary Policy Committee’s 2 per cent to 6 per cent tolerance band. In October, retail inflation reached a surprising 14-month high of 6.21 percent, while vegetable inflation reached a 57-month high of 42.2 percent.

Last week, the Reserve Bank raised inflation expectations for the current financial year to 4.8 percent from 4.5 percent. He also said that persistent food price pressures are likely to keep headline inflation high in the December quarter.

Headline inflation based on the Consumer Price Index (CPI) rose from an average of 3.6% during the July-August period to 5.5% in September and then to 6.2% in October 2024.

In October, inflation rose to 6.2 per cent, exceeding the Reserve Bank of India’s (RBI) upper tolerance threshold of 6 per cent. This is the first time in 14 months, since August 2023, that inflation has exceeded this level. This rise is primarily due to rising food prices, especially vegetables.

Meanwhile, Ministry of Statistics data showed that factory output, as measured by the industrial production index, rose 3.5 percent year-on-year in October 2024. Manufacturing sector output grew 4.1 percent compared to 10.6 percent in October 2024. a month earlier in the year. From April to October, the IIP grew by 4 percent, down from 7 percent in the same period last year.