During November 2020, retail inflation declined, but vegetable prices rose.
According to the Ministry of Statistics, retail inflation (CPI) is below 10 per cent in all the states of the country. The highest inflation rate in November 2020 was recorded in West Bengal and Andhra Pradesh. During the period, food inflation fell 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 of the country. In November 2020, the highest inflation rates were recorded in West Bengal and Andhra Pradesh. Explain that the Reserve Bank of India also takes into account the rate of retail inflation when determining the policy rate in India monetary policy. In other words, the impact of retail inflation data during November can be seen in 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 the November decline, retail inflation remains above the RBI’s target. The RBI has set an inflation target of 4 per cent. It can be improved by 2 percent more or less. Explain that there was no change in the policy rate due to high inflation at the last RBI monetary policy review meeting. At the same time, in November 2020, the 9-month high inflation rate was recorded. Wholesale inflation rose 1.55 per cent in November compared to October. During this period, the prices of manufactured products have increased significantly.