Consumer price inflation falls to a 2-year low of 3.63% in November

Consumer price inflation in the country based on the consumer price index eased to two-year low of 3.63 per cent in September 2016, helped by a sharp drop in vegetable prices and in part supported by a cash crunch resulting from the government's move to demonetise high-value currency notes.

Consumer price inflation stood at 4.2 per cent in October 2016, while it was 5.41 per cent in November last year, official data released by the Central Statistics Office (CSO) today showed.

Food inflation in November stood at 2.11 per cent against 3.32 per cent in October this year and 6.07 per cent in November last year.

Consumer price inflation for the rural areas stood at 4.13 per cent in November 2016 against 4.78 per cent in October 216 and 5.95 per cent in November last year.

Food price inflation for the rural areas stood at 2.87 in November against 3.86 per cent in October 2016 and 5.75 per cent in November last year.

Consumer price inflation for urban areas stood at 3.05 per cent in November 2016 against 3.54 per cent in October 216 and 4.71 per cent in November last year.

Food price inflation in urban areas stood at 0.75 per cent in November 2016 against 2.33 per cent in October 2016 and 6.5 per cent in November last year.

Analysts see the fall in inflation as mostly a reaction to the demonetisation that brought about a cash crunch that left perishable prices crashing.

A good pulses crop also helped to cool inflation due to a demand contraction.