Retail inflation hits 2-year low of 3.63% in November

New Delhi: Retail inflation eased to two-year low of 3.63 percent in November on account of sharp drop in prices of food items, reflecting weak demand as consumers grappled with cash crunch following demonetisation.

AFP

AFP

AFP

The Consumer Price Index-based inflation stood at 4.20 percent in previous month October, the data released by the Ministry of Statistics and Programme Implementation showed.

Retail inflation was at 5.41 percent in November 2015.

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Inflation in vegetables category slipped further in the negative territory at (-)10.29 percent indicating deflation, as against (-) 5.74 percent in October.

However, inflation in fruits came in at 4.60 percent, slightly up from October’s 4.42 percent. Cereals and products at 4.86 percent too showed a rise in inflation print during the month against 4.40 percent.

Protein rich meat and fish had inflation print of 5.83 percent in November as against 6.16 percent in October. Egg prices witnessed 8.55 percent rise as against 9.42 percent in the previous month.

Prime Minister Narendra Modi‘s surprise announcement on 8 November to scrap Rs 500 and 1,000 notes, nearly 86 percent of the total cash in circulation, has resulted in lower consumer demand.

Overall, the Consumer Food Price Index was down at 2.11 percent compared with 3.32 percent in October.

The CPI-based inflation in fuel and light segment was at 2.80 percent in November as against 2.81 percent a month ago.

Rural retail inflation stood at 4.13 percent in November compared with 4.78 percent in October. For urban sector, it was recorded at 3.05 percent as against 3.54 percent in the previous month.

First Published On : Dec 13, 2016 19:54 IST

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