India's retail inflation shoots up to 5.5 percent in Nov, 2023

India’s retail inflation measured by the Consumer Price Index (CPI) shot up to 5.55 percent in November 2023, from 4.9 percent in October 2023, driven by food items as shows official data released on Tuesday  and uncomfortably above the Monetary Policy Committee’s (MPC) long-term target of 4 percent which shifts the possibility of a rate cut to not before the August 2024.

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The CPI uptick in November was entirely driven by the food and beverages segment, with all the other group either reporting a lower or an unchanged year-on-year inflation print in November 2023 relative to October 2023. The price data are collected from selected 1114 urban markets and 1181 villages covering all states/UTs. During the month of November 2023, NSO collected prices from 99.9 percent villages and 98.6 percent urban markets while the market-wise prices reported therein were 90.0 percent for rural and 92.2 percent for urban.