New Delhi: At a time when the economy of the country is going through a dwindling phase, the retail inflation for the month of November has surged to 5.54 per cent from the earlier 4.62 per cent in October.
A massive rise in food prices, especially of onion, has caused November’s retail inflation go up to 5.54 per cent.
The development comes as over 52 economists had last month expected the consumer inflation to go high in December.
Increasing to a 16-month high, the retail inflation in October had gone up to 4.62 per cent because of the costlier food items.
Prior to this, the inflation based on Consumer Price Index (CPI) was 3.99 per cent in September and 3.38 per cent in October 2018.
The increase in food price is the main reason, as experts believe, that led to the inflation hike to 7.89 per cent in October 2019 as against 5.11 per cent the preceding month.
As per data from National Statistical Office (NSO), the Consumer Food Price Index (CFPI) went up to 10.01 per cent during the month under review from an expansion of 7.89 per cent in October 2019 and (-) 2.61 per cent rise reported for the corresponding period of last year.
This development assumes significance as the RBI last month maintained the key lending rates on account of rising retail inflation.
Notably, the data from the NSO clearly indicated that the retail inflation level has breached the medium-term target for consumer price index (CPI) inflation of 4 per cent with a band of +/- 2 per cent.
(With inputs from IANS)