{"id":73148,"date":"2020-12-16T16:54:13","date_gmt":"2020-12-16T11:24:13","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=73148"},"modified":"2020-12-16T18:19:59","modified_gmt":"2020-12-16T12:49:59","slug":"indias-retail-inflation","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-retail-inflation\/","title":{"rendered":"India\u2019s retail inflation"},"content":{"rendered":"<p><strong>Context-<\/strong>\u00a0Retail inflation showed signs of easing in November, led by easing prices of some food items.<\/p>\n<p><strong>More in news-<\/strong><\/p>\n<p>Consumer Price Index inflation stood at 6.93% in November 2020 compared to 7.61% in October, according to data released by the Ministry of Statistics and Program Implementation, though it remained above the comfort level of the Reserve Bank.<\/p>\n<p><strong>What are the reasons for decline in CPI inflation?<\/strong><\/p>\n<ol>\n<li>The movement in retail inflation is broadly driven by the movement in food and beverage inflation which has 46 per cent weight in the consumer price index.<\/li>\n<\/ol>\n<ul>\n<li>Within the food items, the inflation declined for vegetables to 15.63%, cereals and products 2.32%, meat and fish 16.67% and milk and products 4.98%.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>Inflation in the key transport and communication category that includes petrol and diesel eased by a marginal 10 basis points to 11.06%.<\/li>\n<li>The inflation for housing eased to 3.19%, while that for miscellaneous items was flat at 6.94% in November 2020.<\/li>\n<\/ol>\n<ul>\n<li>Within the miscellaneous items, personal care and effects 11.97%, recreation and amusement 4.57%.<\/li>\n<\/ul>\n<p><strong>What are the areas of concern for RBI?<\/strong><\/p>\n<ol>\n<li><strong>Inflation remained above the comfort level of the RBI-<\/strong><\/li>\n<\/ol>\n<ul>\n<li>Out of the food basket of 12 items, inflation still remained in the double digits in the case of six.<\/li>\n<li>Key protein sources including pulses, eggs and meat and fish continued to register worryingly high levels of inflation.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><strong>Worrying high transportation cost<\/strong>\u2013 With oil marketing companies continuing to raise pump prices of these crucial transportation fuels, it is hard to foresee any further appreciable softening in food prices in December.<\/li>\n<\/ol>\n<ul>\n<li>This put the RBI\u2019s forecast for average fiscal third-quarter inflation of 6.8% in jeopardy.<\/li>\n<\/ul>\n<p>Disrupted supply chain logistics, higher operational and labour costs, higher administrative fuel costs partly contribute to the upward inflation trajectory in recent months.<\/p>\n<p><strong>What is the way forward?<\/strong><\/p>\n<ul>\n<li>Policymakers must guard against easing vigilance on prices while considering growth-supportive measures.<\/li>\n<li>Price stability must remain the monetary authority\u2019s primary target.<\/li>\n<li>The decline in the CPI inflation print in Nov 2020 to 6.93 per cent from 7.61 per cent in Oct 2020 has definitely come as a relief to the bond markets.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Context-\u00a0Retail inflation showed signs of easing in November, led by easing prices of some food items. More in news- Consumer Price Index inflation stood at 6.93% in November 2020 compared to 7.61% in October, according to data released by the Ministry of Statistics and Program Implementation, though it remained above the comfort level of the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/indias-retail-inflation\/\">Continue reading <span class=\"screen-reader-text\">India\u2019s retail inflation<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":73180,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1351,1310,9],"tags":[1283,1284],"class_list":["post-73148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-daily-news","category-daily-news-updates","category-public","tag-eco_1","tag-eco_2","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/12\/Indias-retail-inflation.jpg?fit=1280%2C720&ssl=1","views":{"total":0,"cached_at":1700776504,"cached_date":1704930734},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/73148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=73148"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/73148\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/73180"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=73148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=73148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=73148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}