India's retail inflation accelerates to 5.54% in November from 4.62% in Oct

New Delhi: India's retail inflation for November stood at 5.54 percent, according to data released by the Central Statistics Office (CSO) on Thursday (December 12. The retail inflation for October was at 4.62 percent. High food inflation driven by a continued surge in vegetable prices, particularly onions, has pushed overall inflation. 

Food prices, which is a gauge to measure changes in kitchen budgets, grew 10.01 percent in November, against 7.89 percent in October. The Inflation rate for cereals and products stood at 3.71 percent against 2.16 percent a month ago. 

Vegetable inflation for November stood at 36 percent against 26 percent in October. Pulses and products recorded inflation of 13.94 percent in November against 11.72 percent in October.

Last week, the Reserve Bank of India (RBI) kept the key lending rates unchanged at existing levels but acknowledged room for further rate cuts ahead.

The RBI, which tracks consumer inflation data while formulating monetary policy, has so far this year reduced the repo rate by 135 points to a nine-year low of 5.15 per cent to spur growth. 

Notably, the central bank had cited concern about near-term inflation in its December 5 statement. It had also raised CPI projections to 5.1-4.7 percent in the second half of 2019-20, and 4.0-3.8 per cent in the first half of the next financial year citing "broadly balanced" risks.