Business News
2 min read | Updated on December 12, 2024, 16:45 IST
SUMMARY
The Reserve Bank of India (RBI) is tasked to keep CPI-based inflation at 4%, with a tolerance band of 2 percentage points on either side.
The government has tasked the RBI to ensure that consumer price index (CPI)-based inflation remains at 4% with a margin of 2% on either side.
The decline in inflation was primarily to a slowdown in price increases in the “food and beverages” category, the release said.
The Consumer Food Price Index (CFPI), which measures changes in food prices, fell to 9.04% in November from higher levels recorded in previous months. It was 10.87% in October and 8.70% in November 2023.
Housing inflation, calculated only for urban areas, rose slightly to 2.87% in November, compared to 2.81% in October.
Declines in year-on-year inflation were recorded in vegetables, pulses, sugar, fruits, eggs, milk, and personal care products. Items such as garlic, potatoes, and cauliflower, however, remained the biggest contributors to inflation, with garlic prices soaring 85.14% compared to the previous year.
"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," the National Statistics Office said.
The 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, the highest in more than a year since September 2023.
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