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Topic: retail inflation
The retail inflation, which is factored in by the RBI, has been on decline since March with the lowest dip recorded in November last year at 5.54%.
The National Statistical Office data showed overall food inflation in January at 13.63 per cent, slightly lower than 14.19 per cent in December.
Former PM Manmohan Singh had warned in November 2019 that the Indian economy was entering a stage of stagflation, with high inflation and stagnant demand.
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Rising vegetable & pulses prices are blamed for the runaway inflation. This is expected to force RBI to hold key rates next month.
The inflation based on Consumer Price Index (CPI) was 4.62% in October, and 2.33 % in November 2018.
In October, retail inflation registered at 4.62%, far higher than the 4% target that RBI’s monetary policy committee is bound to by law.
The price rise in the food basket was recorded at 5.11% in September, as against 2.99% in September.
Retail inflation has been on the rise since January this year which stood at 3.05% in May 2019 and 4.92% in June 2018.
The move was made tracking rise in food prices – mainly vegetables and expectations of a normal monsoon.
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