India food inflation, which makes up about half of the consumer price basket, 8.7% in November from 6.61% in the previous month, Tuesday’s data showed. Prices of pulses and vegetables jumped 20.23% and 17.7%,
India Food inflation on high food prices, Economists said retail inflation based on the Consumer Price Index (CPI) rose to 5.55 percent in November 2023, far short of the RBI’s medium-term target of 4 percent, with food and beverage inflation rising to 8.0. percent in November. Experts said that while the Reserve Bank of India (RBI) will closely monitor inflation as it remains above the MPC’s long-term target of 4 percent, the central bank will keep interest rates steady for the next few meetings. “We expect the RBI to monitor inflation closely as it remains above the MPC’s long-term target of 4 percent. In our base case, we expect CPI inflation to average 5.5 percent this fiscal, and forecast the RBI to keep interest rates steady for the remainder of this fiscal,” he said.
Aditi Nair, Chief Economist, Head Research & Outreach, ICRA Limited, said, “We expect the MPC to maintain the status quo for the next two policy meetings and forecast a shallow rate cut cycle of around 50-75 bps, in the August 2024 meeting.
India’s Food inflation to 5.55% percent in November from 4.87 percent in October, as a rise in onion prices led to a broad-based rise in food inflation, according to data released by the National Statistics Office (NSO),