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Retail inflation rises to 5.54% in November

Retail inflation rises to 5.54% in November
NEW DELHI: Inflation based on consumer price index (CPI) or retail inflation rose to 5.54 per cent in November as against 4.62 per cent in October, mainly on account of higher food prices, government data showed on Thursday.

The retail inflation figure is at over a 3-year high now. The previous recorded high was 6.07 per cent in July 2016.

This is the second consecutive month when retail inflation stayed above the Reserve Bank of India's (RBI's) medium-term target of 4 per cent.

The RBI mainly factors in the retail inflation while arriving at its bi-monthly monetary policy.

In the wake of the uptick in inflation numbers, the RBI -- which was on a rate cutting spree -- has kept key lending rates unchanged in December's monetary policy committee (MPC) review.

In another set of data released by the government, industrial output growth slipped to 3.8 per cent in October from 4.3 per cent in September, mainly due to poor performance by power, mining and manufacturing sectors.

Factory output, as measured in terms of Index of Industrial Production (IIP), had expanded 8.4 per cent in October 2018.

A slowdown was witnessed in the manufacturing sector, which declined by 2.1 per cent in October as compared to 8.2 per cent growth a year ago.

(With agency inputs)