Consumer Inflation Eases To 6.93% In November, Better Than Estimate

Consumer inflation in the country stood at 6.93 per cent in November, easing from 7.61 per cent in the previous month, government data released on Monday showed. That was better than a reading of 7.10 per cent estimated by analysts in a poll by news agency Reuters. Still, retail inflation — or the rate of increase in the prices that consumers pay for a group of items — stayed outside the RBI's comfort zone of 4-6 per cent for a seventh straight month, a streak not seen since August 2014. 

Retail inflation was helped by lower increases in food prices, but fuel continued to put pressure on the overall reading.

Food inflation — or inflation in the prices of food items — eased to 9.43 per cent last month, escaping double-digit readings recorded in the past few months. In October, it had stood at 11 per cent. 

At its December 2-4 meeting, the Reserve Bank of India's Monetary Policy Committee kept its key repo rate at 4.0 per cent and decided to retain its accommodative stance while ensuring ample liquidity. The central bank has said inflation would remain elevated.

The RBI has pegged retail inflation at 6.8 per cent in the third quarter (October-December) of the current financial year. RBI

The Reserve Bank of India tracks consumer inflation data primarily for formulating its monetary policy.

Currently, the central bank is focused on bringing inflation under control and reviving the economy amid signs of a recovery after months of its struggle against the coronavirus pandemic-caused slowdown.

Separate data released at noon showed wholesale inflation worsened to a nine-month high of 1.55 per cent in November.