Retail Inflation increases in November
Another bad news is coming on the economic front. Inflation has increased in November due to increase in food prices. Retail inflation has increased from 4.62% to 5.54%. Earlier, retail inflation was 4.62 percent in October. The retail inflation rate was 3.99 percent in September. It is clear that in November the retail inflation rate is at the highest level in three months. The prices of grains have increased. The increase in prices of vegetables and pulses is believed to be the main reason. Onion prices in vegetables have been on the sky for the last one month.
Food inflation has increased from 7.89% to 10.01%. According to the data released by the National Statistics Office (NSO), the food inflation has increased from 7.89% to 10.01% in November. In the month of November, rural retail inflation has increased from 4.29% to 5.27% while urban retail inflation has increased from 5.11% to 5.76%. However, the news of some relief for the government has been that the industrial production rate has improved. The industrial production rate was -3.8 percent as against -4.3 percent in October.
The Reserve Bank of India had recently said during the review of monetary policy that inflation could increase in the coming quarter. The government has asked the Reserve Bank of India to keep inflation within the range of 4%, which also has a margin of 2%.
