India’s retail inflation eased to 5.48% in November, while industrial production grew by 3.5% in October
India’s retail inflation moderated to 5.48 per cent in November, with food inflation easing to 9.04 per cent from 10.87 per cent in October.
India’s consumer price index (CPI)- based inflation eased to 5.48 per cent in November after soaring vegetable prices moderated due to an improvement in supply, boosting expectations of an interest rate cut by the Reserve Bank of India (RBI) in the February policy review amid concerns around slowing growth.
November’s inflation print moderated after the indicator hit a 14-month high in October due to high food inflation and subdued urban consumption. That prompted the central bank to raise the inflation projection for the current fiscal to 4.8 per cent from 4.5 per cent in the December monetary policy review.
Meanwhile, the statistics ministry data showed that factory output, as measured by the index of industrial production (IIP), rose 3.5 per cent year-on-year (y-o-y) in October 2024. The manufacturing sector’s output grew 4.1 per cent against 10.6 per cent in the year-ago month. In the April-October period, the IIP grew four per cent, down from seven per cent in the year-ago period.
India’s CPI inflation moderates in November
“During the month of November 2024, a significant decline in inflation is observed in vegetables, pulses and products, sugar and confectionary, fruits, eggs, milk and products, spices, transport and communication and personal care and effects subgroups,” said the National Statistical Office (NSO).
Food inflation slowed to 9.04 per cent in November from 10.87 per cent a month earlier. Food accounts for nearly half of the consumption basket. Vegetable prices rose 29.33 per cent in November from a year earlier after rising 42.18 per cent in October.
In November, a significant decline in inflation was observed in pulses and products, sugar and confectionary, fruits, eggs, milk and products, spices, transport and communication and personal care and effects subgroups.
The top five items showing the highest year-on-year inflation at an all-India level in November 2024 are garlic, potato, cauliflower, cabbage, and coconut oil. The key items having the lowest year-on-year inflation in November are jeera, ginger, LPG-excluding conveyance, and dry chillies.
CPI-based headline inflation increased from an average of 3.6 per cent during July-August to 5.5 per cent in September and further to 6.2 per cent in October 2024.
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