Retail inflation hits 3-yr low of 3.41%

By: |
New Delhi | Updated: January 12, 2017 7:48 PM

Retail inflation eased further to nearly 3-year low of 3.41 per cent in December, reflecting weak demand as consumers grappled with cash crunch following demonetisation.

Economists surveyed by Reuters had expected annual retail inflation to come in at 3.57 percent last month, compared with 3.63 percent in November. (Reuters)Economists surveyed by Reuters had expected annual retail inflation to come in at 3.57 percent last month, compared with 3.63 percent in November. (Reuters)

Retail inflation eased further to nearly 3-year low of 3.41 per cent in December, reflecting weak demand as consumers grappled with cash crunch following demonetisation.

The decline in retail inflation has been mainly on account of falling prices of vegetables and pulses.

This is the lowest level at least since January 2014.

The Consumer Price Index (CPI)-based inflation stood at 3.63 per cent in November 2016, as per the data released by the Ministry of Statistics and Programme Implementation.

A year ago, in December 2015, retail inflation was at 5.61 per cent.

Inflation in vegetables category slipped further in the negative territory to (-)14.59 per cent, as against 10.29 per cent in November.

You may also like to watch

Likewise, prices of pulses and products also slipped further in negative territory at (-)1.57 in December.

However, inflation in fruits came in at 4.74 per cent, slightly up from November’s 4.60 per cent. Cereals and products at 5.25 per cent too showed a rise in inflation print during the month against 4.86 per cent in November.

Protein rich meat and fish had inflation print of 4.79 per cent in December, as against 5.83 per cent in November.

Egg prices witnessed 6.41 per cent rise, as against 8.55 per cent in the previous month.

Prime Minister Narendra Modi’s surprise announcement on November 8 to scrap Rs 500 and Rs 1,000 notes, nearly 86 per cent of the total cash in circulation, resulting in lower consumer demand.

Overall, the Consumer Food Price Index was down at 1.37 per cent in December compared with 2.11 per cent in November.

The CPI-based inflation in fuel and light segment was at 3.77 per cent in December as against 2.80 per cent a month ago.

Rural retail inflation stood at 3.83 per cent in December compared with 4.13 per cent in November. For urban sector, it was recorded at 2.90 per cent as against 3.05 per cent in the previous month.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1GST Council cuts tax on COVID-19 medicines, equipment
2India can achieve 10% growth rate in FY22 if govt provides stimulus to combat COVID-19 pandemic
3Odisha’s Ganjam district generates 1 crore person days of work under MGNREGA in 2 months