Expressing confidence that prices of cereals, pulses and edible oils will soften further in the coming months, the Finance Ministry has said that steps taken by the government have helped in bringing down the inflation to the RBI's tolerance level of below 6 per cent.
The Finance Ministry noted that THE headline inflation rate based on the retail Consumer Price Index (CPI) recorded a drop from 6.77 per cent in October to 5.88 per cent in November, which is an 11-month low, adding that the drastic decline in retail inflation is mainly due to a sharp decrease in food price inflation.
As per the Finance Ministry, the absolute decline in prices of vegetables, oils & fats, and sugar and confectionery contributed significantly to the reduction in food price inflation. Meanwhile, the retail inflation based on Consumer Price Index (CPI) has remained above 6 per cent since January 2022.
