India’s consumer price inflation eased a bit, but still high in November
23 Dec 2020
Consumer price inflation based on the consumer price index declined to 6.93 per cent in November 2020 from 7.61 per cent in October, still way above the tolerance limit set by the Reserve Bank of India of 4% +/- 2%, as food prices continued to remain high.
The continued rise in consumer price inflation can be partly attributed to supply constraints caused by the lockdown restrictions and partly to RBI’s policy of keeping interest rates low.
Although food price inflation eased from the October levels of 11.00 per cent, it was still at a high of 9.43 per cent in November 2020.
Data released by the CSO showed that consumer price inflation has been steadily rising after hitting 3.15 per cent in July last year as food prices continued to rise.
Consumer price inflation for rural areas stood at 7.20 per cent in November 2020 down from 7.75 per cent in October.
Consumer price inflation for the urban areas 6.73 per cent in November 2020, down from 7.33 per cent in October.
Food price inflation for rural areas stood at 9.57 per cent in September 2020, down from 11.12 per cent in October.
Food price inflation for urban areas stood at 9.10 per cent, down from 10.86 per cent in October.