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India`s retail Inflation eases to 5.88% in November month; dips below to RBI`s tolerance band: Govt data
Retail Inflation remained high above the RBI`s tolerance limit for nine-month straight. The dip is attributed to easing food prices that account to 40% of CPI basket across the country.
Highlights
- India retail inflation dips to 5.88%.
- It is below than RBI's tolerance band.
- RBI hiked repo rate fourth-time by 35 basis points in recent MPC meeting.
New Delhi: India’s consumer price inflation (CPI) has reached to 5.88 %, which is the nine-month low. The dip is attributed to easing food prices that account to 40% of CPI basket across the country. The new data will ease the stress from Reserve Bank of India whose Monetary Framework Policy aims to keep the retail inflation rate between 2% to 6%, meaning not lower than 2% and not higher than 6%.
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Retail Inlflation remained high above the RBI’s tolerance limit for nine-month straight. In case of continous three-month high retail inflation than tolerance band, RBI needs to accountable to the central government and give all the measures taken by it to combat the inflation.
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In its recent MPC meeting, the Reserve Bank of India (RBI) had retained its inflation forecast of 6.7 per cent for FY23. RBI recently hiked the repo rate by 35 basis points in order to rein runaway inflation. RBI has increased repo rate many times in the last few months and it is now at 6.25%. This was the fourth time when RBI hiked repo rate in 2022.