TIL Desk/Business/New Delhi / A massive rise in food prices lifted India”s December retail inflation to a 65-month high at 7.35 per cent from 5.54 per cent in November, official data showed on Monday. Economy watchers said the spike in December retail inflation came on the back of expensive food prices, as seasonal factors made vegetables and pulses dearer.
As per the data furnished by the National Statistical Office, on a year-on-year (YoY) basis, the Consumer Price Index (CPI) for December was higher than the corresponding period of last year when retail inflation stood at 2.11 per cent. Similarly, the Consumer Food Price Index (CFPI) inflated to 14.12 per cent during the month under review from an expansion of 10.01 per cent in November 2019 and (-)2.65 per cent rise reported for the corresponding period of last year.
In addition, the data assumes significance as the Reserve Bank of India in its last monetary policy review maintained the key lending rates on account of rising retail inflation. The central bank is expected to keep the rates intact during the last monetary policy review for 2019-20 to be held in February. In terms of CPI YoY inflation rate, vegetables and pulses” prices jumped by 60.50 per cent and 15.44 per cent, respectively in December 2019.
