New Delhi, December 13, 2013 : .India’s retail inflation for November was sequentially higher due to rising food prices and commodity costs.Official data on Monday showed this.According to data, CPI inflation rose to a three-month high of 4.9% which was attributed to higher core inflation.
According to data from the National Statistical Office, Consumer Price Index (CPI), increased by 4.91 percent last month from 4.48% in October 2021.
On a YoY basis however, retail inflation rose by 6.93 percent in November 2020.
Retail inflation was stable despite the increase, within the target range of the Reserve Bank of India of 2-6 percent.
According to NSO data, Consumer Food Price Index rose 1.87 percent last month, up from 0.85 percent in October.
The CFPI measures the change in food product retail prices.
CPI YoY inflation rates showed that pulses and other products saw prices rise by 3.18 percent in November 2021.Apart from the increase in meat and fish prices, egg prices increased by 1.31 percent.However, overall food and beverage prices were up 2.60% and oil and fat prices rose 29.67%.
However, vegetable prices fell by 13.62 percent.
Furthermore, as per the official data, the inflation rate for fuel and light was at 13.35 per cent.
In addition, sub-group of clothing and footwear showed a price acceleration of 7.94 per cent.
ICRA’s Chief Economist Aditi Nayar said: “With input price pressures forcing producers to raise prices in many sectors, the November 2021 CPI inflation accelerated slightly faster than we had expected, shrugging off the favourable base effect and the cut in fuel taxes.
“A moderation in the CPI inflation for fuel and light, pan, tobacco and intoxicants, and miscellaneous items was outpaced by the rise in the inflation for food and beverages, housing, and clothing and footwear.”
Emkay Global Financial Services Lead Economist Madhavi Arora said: “Going ahead, we remain watchful of various inflation push and pull such as excise cut-led fall in fuel price hike, telecom tariff hike, volatility in vegetables prices, correction in global commodity prices and early signs of easing supply chains globally.
“Besides, the base effect will start getting unfavourable in coming months, and the headline may even fiddle with 6 per cent plus print.We also remain watchful of the pass-through of impending cost push pressures in core goods inflation and cost push via imported energy inflation, while re-opening-led ensuing demand revival in select contact-sensitive household services could pressure core services inflation ahead.”
India Ratings & Research Chief Economist Devendra Kumar Pant said: “Excise relief on petrol and diesel and cut in VAT by most state governments have not provided much relief to retail inflation.Inflation of both ‘transport and communications’ and afuel and light’ declined in November 2021, however, remained in double digit.
“India Ratings has been suggesting that the inflation of commodities such as health, fuel and light, and transport and communications has turned structural.”
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