New Delhi: Retail inflation rose marginally to 4.91 percent in November due to higher food prices. This information has been given in the government data released on Monday. The consumer price index-based inflation stood at 4.48 percent in October this year and 6.93 percent in November 2020.
According to the National Statistical Office (NSO) data, food inflation stood at 1.87 percent in November this year as against 0.85 percent in the previous month. The Reserve Bank of India primarily takes into account the retail inflation rate while deciding the bi-monthly monetary policy review.
It believes that the inflation figure will remain high for the remainder of the current financial year as the effect of the comparative base has now turned adverse. According to the Reserve Bank, core inflation will remain high in the fourth quarter of the current financial year. After that, it will soften.
The Reserve Bank of India (RBI) had kept the key interest rate unchanged in its monetary policy review in December. It primarily focuses on the CPI while setting its bi-monthly monetary policy.
RBI has projected CPI inflation at 5.3 percent during 2021-22, 5.1 percent in Q3, and 5.7 percent in Q4 of the financial year, with risks to be roughly balanced. The CPI inflation for the first quarter of 2022-23 is estimated at 5 percent.