India’s retail inflation eased to a three month low in November on the back of stable vegetable prices, even as it remained above the central bank’s upper tolerance limit of 6 %, the official data showed on Monday. Inflation based on the Consumer Price Index (CPI) moderated to 6.93% in November from 7.61% in the previous month, according to the data released by the Ministry of Statistics and Programme Implementation.
However, economists ruled out any possibility of a policy rate reduction in the near term. Food inflation declined to 9.43% compared to 11% in October. Rural areas witnessed higher inflation at 9.57%, while cities saw 9.10% inflation in food.The headline CPI inflation for November printed appreciably lower than our expectations, benefitting from stable vegetable prices at retail level.
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