Retail inflation hits 16-month low; softens to 2.3 % in November

Retail inflation hits 16-month low; softens to 2.3 % in November
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New Delhi, Dec 12: India’s retail inflation eased to 2.3 percent in November, according to data released by the government on December 12. It stood at 4.88 percent in November last year and was 3.31 percent in October.
CPI is the main price gauge that the Reserve Bank of India (RBI) tracks.
The central bank last week trimmed H2FY19 (October-March) inflation forecast to 2.7-3.2 percent from 3.9-4.5 percent earlier. It pegged H1 FY20 (April-September) inflation at 3.8-4.2 percent.
As per minutes of the RBI’s Monetary Policy Committee meeting held on December 5, former RBI Governor Urjit Patel said that broad-based weakening of food prices and the sharp decline in international crude oil prices imparts a downward bias to the headline inflation trajectory going forward.
However, there has been a broad-based increase in inflation in non-food groups, Patel had said.
Consumer food price index recorded de-growth of 2.61 percent in November, from (-) 0.86 percent in October, mainly driven by cheaper vegetables, fruits, pulses and sugar.