Odisha, Rajasthan see highest retail inflation in November – Times of India

NEW DELHI: Odisha had the highest retail inflation among states in November, while Delhi and Chhattisgarh continued to witness low price pressures, data for retail inflation released has shown.
Nine out of 22 states for which data is published had higher rates than the overall inflation rate for the country. Retail inflation, as measured by the consumer price index (CPI), rose to a three-month high of 5.6% in November, higher than the previous month’s 4.9%, led by a surge in vegetable and some food prices, posing fresh challenges for policymakers and dashing prospects of any interest rate cut for now.

At 7.7%, Odisha witnessed the highest retail inflation rate in November, followed by Rajasthan at nearly 7% and Haryana at 6.8%.Karnataka and Punjab recorded 6.5% each. At 3.1%, Delhi topped the charts for states with the lowest inflation rates, followed by Chhattisgarh at 3.6% and Jammu & Kashmir at 3.8%. West Bengal recorded 4.7%, while Kerala had 4.8%.
Price pressures picked up pace in November after the overall inflation rate slowed to a 4-month low in October, bringing some respite from sticky price pressures.
The Reserve Bank of India (RBI) monetary policy committee in its latest statement had said that uncertainties in food prices along with unfavourable base effects are likely to lead to a pick-up in headline inflation in November-December. Kharif harvest arrivals and progress in rabi sowing together with El Nino weather conditions need to be monitored, the MPC had said. “The MPC observed that recurring food price shocks are impeding the ongoing disinflation process. Core disinflation has been steady, indicative of the impact of past monetary policy actions. Headline inflation, however, remains volatile, with possible implications for the anchoring of expectations. Domestic food inflation unpredictability, and volatility in crude oil prices and financial markets in an uncertain international environment pose risks to the inflation outlook,” said the MPC statement released last week.
Experts said they expect the inflation rate to moderate in the months ahead.

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