The retail inflation rate, which is measured by Consumer Price Index (CPI), increased to 4.91 percent in November 2021, shows data released by the Ministry of Statistics and Programme Implementation (MoSPI) on December 13.
Inflation has seen an increase on a sequential basis, up from 4.48 percent recorded in October 2021. On a year-on-year basis, the rate of inflation was 6.93 percent, up 2.45% from the current level.
The upward momentum on a sequential basis came in due to an increase in food prices, especially vegetables, the government data showed. The overall Consumer Food Price Index (CFPI) increased to 1.87 percent, corresponding to 0.85 percent in the last month.
Both the CFPI and CPI-based inflation in November was higher in the urban areas as compared to the rural parts of the country.
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Retail inflation leapt up by 5.54 percent in urban areas, while 4.29 percent in rural areas, respectively, whereas food inflation climbed 3.33 percent in urban areas and 1.09 percent in rural areas.
For the consecutive fifth year, retail inflation has been below the Reserve Bank of India (RBI)’s six percent target. The central bank has instructed the government to keep retail inflation at 4% for the next five years, until March 2026, with a 2% upper and lower margin on either side.
The RBI gave an outlook for CPI inflation at 5.3 percent for the fiscal year 2021-22. This prediction comprises growth of 5.1 percent in the second quarter, 4.5 percent in the third quarter, and 5.8 percent in the fourth quarter, with risks largely balanced. The retail inflation rate is expected to be 5.2 percent in April-June 2022-23.