Retail inflation cools down in November; food prices remain benign but veggies still costly

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December 14, 2020 5:50 PM

The rise in food prices moderated from 11 per cent in October to 9.43 per cent in the last month.

IIP, CPI, retail inflation, retail inflation,Consumer Price Index (CPI) inflation decreased from 7.61 per cent in October to 6.93 per cent in November.

The prices of household items moderated in the month of November 2020. Consumer Price Index (CPI) inflation decreased from 7.61 per cent in October to 6.93 per cent in November, according to the Ministry of Statistics & Programme Implementation. The rise in food prices also moderated from 11 per cent in October to 9.43 per cent in the last month. However, the vegetable prices grew at a higher pace of 15.63 per cent. While the inflation rate remained lower than 10 per cent in all of the states, it remained highest in West Bengal and Andhra Pradesh.

On the other hand, the prices of wholesale items in India rose at a 9-month high pace in the month of November 2020. Wholesale Price Index (WPI) rose 1.55 per cent on-year in November 2020, after a 1.32 per cent rise in the previous month. It was the fourth straight annual increase in prices and the strongest since February, as cost of manufactured products rose at a faster pace.

The government and the Reserve bank of India are keeping a close watch on the inflation figures, which is likely to play an important role in framing further policies. Also, the high inflation rate is hampering the household income even as the the economy is on an upward trajectory, from the record slump faced in the beginning of the current fiscal year 2020-21.

Also Read: Economy grows but households’ sentiment hit in November; consumers face a double whammy

Meanwhile, the double whammy of fall in employment and household incomes have together hit the consumer sentiments in the month of November 2020. While employment fell by 0.9 per cent or 35 lakh during the month, only 4.3 per cent of the households reported an increase in their nominal incomes compared to a year ago, according to the Centre for Monitoring Indian Economy (CMIE). Higher inflation is believed to be one of the major reasons behind the shrinking household income

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