Santa might have come in early this year. For those at India's central bank, and maybe even for some of us. That's if the retail inflation figures are anything to go by.
Retail inflation fell to 5.9% in November from 6.8% the previous month. It was also below the central bank's upper band of 6% for the first time since December last year.
What changed?
Inflation in food and beverages was at 5.1%, against 7% in the previous month, the lowest in 11 months.
Sequential momentum eased as well, with food prices falling 0.7% from November, with the decline led by vegetables. Vegetable inflation had fallen by 8.1% on an annual basis—the lowest print in a year.
But (yes, there is a but) several other categries continued to rise.
Cereal and spice inflation has reached new highs since at least 2014. In November, cereal inflation increased to 12.96% on an annual basis, while spice inflation increased to 19.5%.
Within cereals, inflation in rice and wheat rose to the highest since at least 2015. While rice inflation rose to 10.5%, inflation in wheat rose to 19.7%. As a result, bread inflation increased to 17.8%, while bread and bakery inflation rose to 12.8%. Inflation in biscuits and chocolates hit a record high of 12.4%.
You might want to keep that in mind the next time a loaf of plum cake tempts you at the local bakery.
Inflation in milk was at 8.23%, the highest since 2015, pushing up the prices of milk products such as baby food, milk powder, and condensed milk.
Spice inflation rose for the sixth consecutive month in November, reaching 19.5%.
Inflation in clothing and footwear came off its record highs but remained sticky, along with a continuing rise in momentum. Clothing prices increased 9.5% in November, while footwear prices rose 12%.
Maybe it's not too late to search for a deal on your favourite e-comm portal?
Utilities: Same Old, Same Old
Prices of petrol and diesel fell on an annual basis after having risen by double digits a year ago. Prices of LPG, diesel, and petrol remained largely unchanged over the previous month as well.
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