During November 2020, the retail inflation declined, but the prices of vegetables increased.
According to the statistical ministry, retail inflation (CPI) in all states of the country remains below 10 percent. The highest inflation rate in November 2020 was recorded in West Bengal and Andhra Pradesh. During this period, the inflation rate of food items fell from 11 percent in October to 9.43 percent in November.
- Last Updated:
December 14, 2020 10:46 PM IS
Retail inflation is below 10 percent in all states
According to the ministry, retail inflation in all states of the country remains below 10 percent. In November 2020, the highest inflation rate was recorded in West Bengal and Andhra Pradesh. Explain that while deciding on the policy rates in the Reserve Bank of India Monetary Policy, also takes into account the retail inflation rate. In other words, the impact of retail inflation data during November can be seen on the decisions taken in the next review meeting of RBI. Even after the boom in the economy, higher retail inflation rate affects the income of common people.
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Even after the fall in November, the retail inflation rate remains higher than the RBI target. RBI has set inflation target at 4 percent. It can be amended by 2 percent more or less. Explain that in the last review meeting held on the RBI’s monetary policy, no change in policy rates was made due to high inflation. At the same time, in November 2020, the highest inflation rate of 9 months was recorded. The wholesale inflation in November has increased by 1.55 per cent over October. During this period, the prices of manufactured products have increased significantly.