Retail inflation rose to 5.54 percent in November. The retail inflation rate has been the highest since 2016 till November 2019. Also, it is more than the 4% medium-term target set by Reserve Bank of India (RBI).
||Anjan K Samal
The retail inflation in October was 4.62 percent. On the other hand, industrial production (IIP) declined to 3.8 percent in October. IIP registered 8.4 percent growth in October last year. This information came from the data released by the government on Thursday.
The manufacturing sector registered a slowdown and declined its level of production by 2.1 percent in October, showing a growth of 8.2 percent in the same period a year earlier. The power generation fell 12.2 percent in October, registering a growth of 10.8 percent in the year-ago period.
Talking about the retail inflation rate, the rise in prices of food items has had a significant impact on this. Food price inflation (rural and urban) registered an increase of 10.01 percent in November. The share of food items in the Consumer Price Index (CPI) is 45.9 percent.
Rising onion prices also had a significant impact on retail inflation. Onion prices registered an increase of price level 45.3 percent in September and 19.6 percent in October.