CPI inflation eases to 11-month low of 5.9% in November; IIP contracts

Core inflation inches up; manufacturing activity declines

India’s retail inflation rate unexpectedly decelerated to an 11-month low in November, and factory output contracted to hit a 26-month low in October, further strengthening the case for ending the 

rate hike cycle by the central bank.  

The data released by the National Statistical Office on Monday showed that the Consumer Price Index (CPI)-based inflation rate eased below the Reserve Bank of India’s (RBI’s) upper tolerance limit 

of 6 per cent, to 5.88 per cent, in November due to a sharp moderation in food prices. It was 6.77 per cent in October 2022, and 4.91 per cent in November last year.
 

The Index