Retail inflation eases marginally to 6.93% in November

Retail Inflation has eased marginally to 6.93% in November due to considerable easing in vegetable prices. Retail inflation had remained above 7 per cent for two month in a row. It had surged to six-and-half year high of 7.61 per cent in October, 2020.

RBI Governor on central bank and inflation
In an interview, RBI Governor Shaktikanta Das told ET that at least for now, inflationary pressures are not going to weigh on the central bank’s policy formulation as they are more due to supply-side factors and not because of low interest rates or surplus liquidity.

RBI on Inflation
At its December 2-4 meeting, the Reserve Bank of India kept its key repo rate at 4.0% and the Monetary Policy Committee retained its accommodative stance while ensuring ample liquidity, playing a delicate balancing act of curbing high inflation and bolstering a nascent economic recovery. The central bank also said inflation would remain elevated.

November WPI
The wholesale price index-based inflation rate rose to a nine-month high of 1.55 per cent in November even as the rate of food price rise narrowed substantially to 3.94 per cent from 6.37 per cent in October. November was the fourth month in a row with WPI inflation. Before that there was deflation for months at a stretch.