India's retail inflation as measured by the Consumer Price Index (CPI) slowed down to 11-month low of 5.88 per cent in November from 6.77 per cent in the previous month. This is the first time since December last year that the retail inflation has come below Reserve Bank of India's (RBI) tolerance level of 6 per cent.
The fall in inflation comes as a respite to the RBI which has been struggling to tame inflation below the upper band of 6 per cent since January this year. Its monetary policy of increasing lending rates has been one of the ways to try and bring down inflation levels.
In November, inflation in food and beverages stood at 5.07 per cent compared to 7.04 in October. Cereals and products recorded an inflation of 12.96 per cent compared to 12.08 per cent recorded a month ago.
Inflation in vegetables in November contracted 8.08 per cent, compared to an inflation of 7.7 per cent a month ago. Inflation in pulses and products stood at 3.15 per cent compared to 2.78 per cent a month ago. Housing inflation in November stood at 4.57 per cent, compared to 4.58 per cent a month ago.
Health inflation stood at 5.83 per cent in November, compared to 5.68 per cent in October. Fuel inflation in November stood at 10.62 per cent, compared to 9.93 per cent a month ago.
The RBI had last week said the worst of inflation is behind us, but there is no room for complacency in the fight against price rise. The central bank also said it will keep 'Arjuna’s eye' (keen focus) on the evolving inflation dynamics and projected inflation to remain above 4 per cent for the next 12 months.
Its interest rate-setting panel last week hiked the benchmark rate by 35 basis points to 6.25 per cent, taking the cumulative rate hikes to 2.25 per cent since May this year.
