India’s retail inflation increased to 5.55 per cent in November after having slowed to a four-month low of 4.87 per cent in October, with higher food prices pushing up the cost of living and stretching household budgets.
The increase in the inflation level above the RBI’s 4 per cent target means that the central bank is not likely to go in for a rate cut to spur economic growth.
Food inflation, which accounts for nearly half of the overall consumer price basket, rose by 8.7 per cent during November compared to 6.61 per cent in October as the prices of vegetables such as onion, fruit, and pulses went up sharply during the month, data released by the Ministry of Statistics on Tuesday showed.
The prices of pulses, which are the main source of proteins in the country’s diet, shot up by a whopping 20.2 per cent during the month while vegetable prices increased by as much as 17.7 per cent and fruits turned costlier by 10.9 per cent. Cereal prices too rose by double digit figures while spices turned costlier by 21.55 per cent.
However, there was some consolation in fuel prices showing a marginal dip compared to the same month last year as the government reduced the price of LPG and kept petrol and diesel prices on hold during the month.
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