CPI inflation rises to 5.55% in November: IIP growth rate at 11.7% in Oct

Retail inflation: In the recent MPC announcement, RBI Governor Shaktikanta Das had said that the inflation figures may show an uptick in November and December owing to food output pressures

India's consumer price index (CPI)-based retail inflation in November came out to be 5.55 per cent, according to the data released by the National Statistical Office on Tuesday. In October, the retail inflation was recorded at 4.87 per cent.

Till October, the retail inflation rate had declined for the second consecutive month to a five-month low.

Rural inflation was 5.85 per cent in November vs 5.12 per cent in October. Food inflation came in at 8.70 per cent for November, as against 6.61 per cent in October.

The headline inflation remained within the Reserve Bank of India's (RBI) tolerance band of 2-6 per cent for the third month in a row in November, However, it has now been above the medium-term target of 4 per cent for 50 consecutive months.

In the recent Monetary Policy Committee (MPC) announcement, Shaktikanta Das, governor of the Reserve Bank of India (RBI), had said that the inflation figures may show an uptick in November and December owing to food output pressures.

RBI's MPC had retained the retail inflation projection for the current financial year at 5.4 per cent.

"Taking into account these factors and on the assumption of normal monsoons, CPI inflation is projected at 5.4 per cent for 2023-24, with Q3 at 5.6 per cent and Q4 at 5.2 per cent," Das had said.

He also added that the ongoing rabi sowing progress for key crops like wheat, spices and pulses needs to be closely monitored. 

For the month of October 2023, the Quick Estimates of Index of Industrial Production (IIP) growth came at 11.7 per cent, as against -4.1 per cent a year ago in October.