“During November, a significant decline in inflation was observed in vegetables, pulses and products, sugar and confectionary, fruits, eggs, milk and products, spices, transport and communication and personal care and effects subgroups,” the data states.
Due to persistent high food prices and weakened consumption, last week, the Reserve Bank of India (RBI) raised its inflation forecast for the current fiscal year to 4.8 per cent from 4.5 per cent.
“While food inflation eased slightly due to a decline in vegetable prices, which showed sequential moderation, food inflation remained elevated due to higher edible oil prices. At the same time, core inflation displayed an uptick, warranting attention,” Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares and Stock Brokers, said.
The data states that food inflation remained high in November, although it slowed during the month, with the Consumer Food Price Index standing at 9.04 per cent compared to 10.87 per cent in October, driven largely by high prices of vegetables, fruits, oils and fats.
