CPI eases to 6.93% in November on softer food prices

15 Dec 2020 Evaluate

Retail inflation based on the Consumer Price Index (CPI) eased to 6.93 per cent in November on the back of softer food prices, though it remained above the comfort level of the Reserve Bank of India (RBI). The CPI stood at 7.61 per cent in October. The RBI, which mainly factors in retail inflation while arriving at key policy rates, has been mandated by the government to keep inflation at 4 per cent (+, - 2 per cent).

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that the Rural CPI (General) in November stood at 7.20 per cent as against 7.75 per cent in October. The Urban CPI (General) stood at 6.73 per cent in November as against 7.33 per cent in October. The index value for Rural, Urban and Combined CPI (General) stood at 160.7, 156.9 and 158.9, respectively, in November 2020.

Inflation in the food basket was 9.43 per cent in November, down from 11.07 per cent in the previous month. The data indicated that the Rural Consumer Food Price Index (CFPI) stood at 9.57 per cent in November as compared to 11.12 per cent in October. The Urban CFPI stood at 9.10 per cent in November as against 10.86 per cent in October. The index value for Rural, Urban and Combined CFPI stood at 164.8, 167.8 and 165.9, respectively, in November 2020.

Vegetables inflation for November came in at 15.63 percent, oils and fat at 17.86 percent, meat and fish at 16.67 percent, and pulses and products at 17.91 percent. Egg prices climbed 20.26 per cent on-year in November. Besides, inflation in transport and communication came in at 11.06 percent and that in recreation and amusement came in at 4.57 percent.

The Price data are collected from representative and selected 1114 urban markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of November 2020, NSO collected prices from 98.8% villages and 98.6% urban markets while the market-wise prices reported therein were 87.0% for rural and 91.1% for urban.

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