In December 2023, retail inflation in India reached a four-month high of 5.69%. It was 5.55 percent in November. Retail inflation was 5.72 percent in December of previous year.
The increase in inflation was caused by an increase in food prices. In December, food inflation was 9.53 percent. It was 4.19 percent in December of last year. It was 8.7 percent in November 2023.
In the most recent bi-monthly monetary policy pronouncement, Reserve Bank of India (RBI) Governor Shaktikanta Das stated that the inflation outlook in the next months will be influenced by volatile food prices.
"High frequency food price indicators point to an increase in key vegetable prices, which could drive CPI inflation higher in the near term." Rabi sowing process for vital crops such as wheat, spices, and pulses must be regularly watched. "Rising global sugar prices are also cause for concern," he added.
However, it falls short of the 5.87 percent projected in a Reuters poll earlier this month. For the fourth consecutive month, retail inflation has remained within the RBI's upper tolerance range of 6%. The greatest inflation rate was 8.70% in the food and beverage category.
The November Index of Industrial Production (IIP), reported by the Ministry of Statistics and Programme Implementation, fell to 2.4 percent, the lowest level since March 2023, when it was 1.7 percent.
Manufacturing expanded at the slowest rate of 1.2 percent when compared to November 2022. The textile, furniture, computer, electronic, and optical products industries all de-grew by more than 20%, dragging down the manufacturing sector.
In November, the energy industry grew by 5.8 percent, while the mining sector grew by 6.8 percent.
