Retail Inflation Increased to 9.90 Percent in November 2012

Consumer Price Index (CPI) data released on 12 December 2012 showed that the retail inflation increased for the second successive month to 9.90 percent in November 2012 mainly because of the increase in price of food products like edible oil, sugar, vegetables as well as clothing. In October 2012, the retail inflation was 9.75 percent and in September 2012, it was 9.73 percent.

Maximum increase in the price in the month of November 2012 was in oil as well as fats segment, amounting to the annual inflation of 17.67 percent. Apart from oil, the price of sugar also increased by 16.97 percent and pulses on the other hand because costlier by 14.19 percent on yearly basis.

The prices of vegetables increased by 14.74 percent in November 2012, while the price of egg, fish and meat increased by 11.33 percent. Also, there was an increase in the price of footwear and clothing at 11.08 percent in November 2012.
 
In the urban areas, retail inflation increased to 9.69 percent in November 2012 in comparison to 9.46 percent in October 2012. However, in rural areas there was a very slight decrease in inflation to 9.97 percent in November 2012 from 9.98 percent in October 2012.

The rural, urban and combined All India provisional General (all groups) CPI numbers for the month of November 2012 are 126.9, 123.4 and 125.4, respectively.

It is important to note that the Reserve Bank will keep an increase in retail inflation in mind while taking review about the mid-quarter policy in the third week of December 2012. In October 2012, raising concerns over rising inflation, Reserve Bank had kept the standard interest rates unchanged.