Three months later, retail inflation will once more exceed the RBI's 6 percent target range
RBI: The retail inflation rate was 6.83 per cent in August 2023. According to the data, overall prices increased by just 0.11 per cent each month in December.
Retail inflation may break out of the RBI's high range of 6% in December 2023 after staying under control for three months. In research, the Centre for Monitoring India Economy (CMIE) asserted that the inflation rate based on the Consumer Price Index (CPI) might hit a four-month high of 6.25 per cent in December. It was 5.55 percent in November 2023.
Previously, in August 2023, the retail inflation rate was 6.83 per cent. According to the data, overall prices increased by just 0.11 per cent every month in December. Nevertheless, there's a chance that CPI-based inflation will rise in December 2023 because of the low base in December of the previous year.
Meat, fish, and eggs will see an increase in inflation from 2.50 to 3.40 per cent. Moreover, sugar inflation is expected to reach 6.81 per cent. The analysis states that in December 2023, food inflation, which makes up around 40% of CPI inflation, might reach 10.60%. November 2023 saw an 8.70 percent percentage. Inflation of vegetables will also increase to 34 per cent, which was 17.70 per cent in November 2023. The rise in vegetable prices is due to the shallow base of December 2022.
