Retail inflation at four-month-high of 5.69% in December, Nov IIP at 2.4%

Retail inflation: The jump in inflation was due to a rise in food prices as food inflation came in at 9.53 per cent in December

India's retail inflation rose to a four-month high of 5.69 per cent in December 2023. In November, it was 5.55 per cent. In December last year, the retail inflation was 5.72 per cent.

The jump in inflation was due to a rise in food prices. The food inflation came in at 9.53 per cent in December. In December last year, it was 4.19 per cent. In November 2023, it was 8.7 per cent. 

In the latest bi-monthly monetary policy announcement, the Reserve Bank of India (RBI) Governor Shaktikanta Das said that in coming months, the inflation outlook would be influenced by uncertain food prices. 

“High frequency food price indicators point to an increase in prices of key vegetables which may push CPI inflation higher in the near-term. The ongoing rabi sowing progress for key crops like wheat, spices and pulses needs to be closely monitored. Elevated global sugar prices is also a matter of concern,” he said. 

It, however, is below the 5.87 per cent predicted by a Reuters poll earlier this month. The retail inflation also continues to stay inside the RBI’s upper tolerance limit of 6 per cent for the fourth consecutive month. 

The highest inflation was recorded in the food and beverages category at 8.70 per cent. 

The Index of Industrial Production (IIP) for November, released by the Ministry of Statistics & Programme Implementation, fell to 2.4 per cent, the lowest since March 2023 when it was 1.7 per cent. 

Among the sectors, manufacturing grew at the slowest pace of 1.2 per cent as compared to November 2022. The manufacturing sector was pulled down by apparel, furniture, computer, electronic and optical products industries, all of which saw a de-growth of over 20 per cent.  

The electricity sector saw a 5.8 per cent growth and the mining sector witnessed a 6.8 per cent growth in November.