The November (2024) decline in retail inflation was a relief to India’s policymakers. Retail price inflation in the country was 5.48% last month. That is, the inflation rate is within the Reserve Bank of India (RBI) comfortable range of 2% to 6%.
According to Economic Times, India’s inflation rate rose to a 14-month high of 6.21% in October. It then fell to 5.5% in November. However, this means that the price of products in the Indian market has not decreased much yet.
According to data from the Indian government, rural areas experience a higher rate of inflation than urban areas. While the rate of inflation in rural areas was 5.95%, in urban areas the retail price inflation of products declined to 4.83%. The high rate of inflation in rural areas means that the lives of low-income people have not come to much relief. RBI aims to bring retail inflation down to 4 percent over the medium term.
Food inflation was as high as ever in November. Inflation came down to 9.04% last month, compared to 10.87% in October, but it did not benefit people much. November saw a general increase in food prices because of rising costs for fruits, vegetables, dairy products, and oil. House prices in India increased in November compared to October.
In April (2022), retail price inflation in India rose to 7.79%. RBI then hiked the policy rate. At the same time, the government improved the supply system of products—the combined effect of these two reduced the price of goods in the market. India’s festive season sales were impacted by high inflation in October.
The inflation rate in India will be more bearable in the 2024-25 financial year, according to a report by Bank of Baroda. Additionally, the report noted that prices for a number of products helped level off on the global market.
