“During November 2024, 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 state.
Due to persistent high food prices and weakened consumption demand, last week, the Reserve Bank raised its inflation forecast for the current fiscal year to 4.8 per cent from 4.5 per cent earlier.
“While food inflation eased slightly, driven by 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,” said Sujan Hajra, chief economist and executive director, Anand Rathi Shares and Stock Brokers.
The data state that food inflation remained high in November, although it slowed during the month, with the Consumer Food Price Index (CFPI) 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.
The data also show higher inflation in rural areas at 5.95 per cent, compared to 4.83 per cent in urban regions. However, the inflation both for rural and urban areas moderated in November as compared to October when it was 6.68 per cent and 5.62 per cent, respectively.
Also, housing inflation increased to 2.87 per cent in November from October’s 2.81 per cent. The housing index is calculated only for urban areas.
On outlook in coming months, he added, “Looking ahead, we anticipate further moderation in food prices, supported by a robust rabi harvest. This should provide some relief to inflationary pressures.”
