Retail inflation rose to 4.91 percent in November 2021 due to higher fruit and vegetable prices
Retail inflation rose to 4.91 percent in November 2021 from 4.48 percent in October, government data showed on Monday. The price increase was mainly the result of a sharp price increase of fruit and vegetables and other edible products such as eggs, grains and dairy products.
Even food inflation rose to 1.87 percent in November 2021, from 0.85 percent in October 2021.
Previously, consumer price index (CPI) inflation had risen to 4.48 percent in October 2021 from 4.35 percent in September, again driven by higher food and fuel prices.
Compared to November 2020 levels, however, inflation for both retail and food is significantly lower, as the figures for the same period last year were 6.93 percent and 9.50 percent respectively.
Overall, excluding the prices of fruits and vegetables, in November 2021 there was a noticeable increase in the prices of clothing and footwear, household goods and services, recreation and entertainment and education.
The most significant increase was seen in the vegetable index, which rose from 185.3 in October 2021 to 199.1 in November 2021, according to data released by the Ministry of Statistics and Program Implementation.
However, retail inflation for November 2021 remained within the Reserve Bank of India’s (RBI) tolerance range of 2 percent to 6 percent for the fifth consecutive month.
The rise in CPI inflation was in line with many agencies’ expectations, most notably Reuters’ Dec. 6-8 poll of 39 economists, whose November inflation data forecast was 5.10 percent, mainly due to price increases for fruits and vegetables.
