Retail inflation rose significantly to over three-year high of 5.54% in November, mainly on account of higher food prices. The inflation based on Consumer Price Index (CPI) was 4.62% in October, and 2.33% in November 2018.
As per the data released by the National Statistical Office (NSO), the inflation in the food rose to 10.01%. This compares with 7.89% October and (-) 2.61% in the year ago-month.
The previous high of CPI was 6.07 in July 2016.
The Reserve Bank of India has been mandated by the government to contain inflation in the range of 4%, with a margin of 2% on either side.
Based on historical data, India’s inflation rate in India averaged 5.98% from 2012 until 2019, reaching an all-time high of 12.17% in November of 2013 and a record low of 1.54% in June of 2017.
However, the RBI has retained its consumer price inflation forecast for the second half of 2019-20 at 3.5-3.7% and there was no rate cut in the RBI meet that concluded last week.
(With inputs from agencies)