Retail inflation eased in November 2020 but vegetable prices rose.
According to the Ministry of Statistics, retail inflation (CPI) is below 10 per cent in all the states in the country. In November 2020, the highest inflation rates were recorded in West Bengal and Andhra Pradesh. Food inflation eased to 9.43 per cent in November from 11 per cent in October.
- Last updated:
December 14, 2020, 10:46 PM IST
Retail inflation is below 10 per cent in all the states
According to the ministry, retail inflation is below 10 per cent in all the states in the country. In November 2020, West Bengal and Andhra Pradesh recorded the highest inflation rate. Explain that the Reserve Bank of India also takes into account the retail inflation rate when deciding on the monetary policy rate. In other words, the retail inflation figures during November reflect the decisions taken at the RBI’s next review meeting. Even after the boom in the economy, retail inflation still affects the income of the common man.
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Even after declining in November, retail inflation is higher than the RBI’s target. The RBI has set an inflation target of 4 per cent. It can be improved by at least 2 percent. Explain that in the last review meeting on RBI’s monetary policy, there was no change in the policy rate due to high inflation. At the same time, November 2020 recorded the highest inflation rate for 9 months. Wholesale inflation rose to 1.55 per cent in November from a year earlier. There has been a significant increase in the prices of manufactured products during this period.