Inflation at 11-month low; It decreased to 5.88 percent in November

New Delhi: (www.kvartha.com) Inflation in the retail sector eased to an 11-month low of 5.88 percent in November from 6.77 percent in October. The government has released the figures related to this. Average inflation was above six per cent for three consecutive quarters during January-September 2022. Average inflation was 6.3 per cent in the January-March quarter, 7.3 per cent in the April-June period and seven per cent in the September quarter. A year ago in November 2021, the retail inflation rate was 4.91 percent.

The main reason for the decline in retail inflation is the lower food price inflation. The food inflation rate was 7.01 percent in October 2022, which declined to 4.67 percent in November. On the other hand, retail inflation in urban areas was 6.53 percent in October, which declined to 3.69 percent in November. Retail inflation in rural areas declined to 5.22 per cent in November from 7.30 per cent in October. Inflation of greens and vegetables decreased to -8.08 percent. The increase in the price of fruits is 2.62 percent.

The biggest relief was that the retail inflation rate fell below the RBI’s tolerance band of six percent. The RBI has set a tolerance band of two to six percent for the inflation rate. This is the first time in 11 months that retail inflation has come within the RBI’s tolerance limit. If the inflation rate continues to fall, interest rates may not be hiked next year. Repo rate hike may also stop. If the retail inflation rate falls, interest rates may also fall.

Keywords: Latest-News, National, Top-Headlines, New Delhi, Rate, Price, Food, Rice, Retail inflation falls to 11-month low of 5.88 pc in November.

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