Inflation down to 9.11% in November

May prompt RBI to halt monetary tightening

PTI | December 14, 2011



Moderating prices of essential food items like onions, potatoes and milk pulled down inflation marginally to 9.11 percent in November, a development that may prompt the Reserve Bank to halt its monetary tightening strategy at its policy review on Friday.

Also see: Will food cost a little less soon?
Kaushik Basu: Food inflation may fall below 3% within a month

Inflation, as measured by the Wholesale Price Index, stood at 9.73 per cent in October, 2011. It was recorded at 8.2 per cent in November, 2010.

A marginal decline in inflation is good news amid the depressing scenario on the industrial production and rupee front.

While industrial production declined by 5.1 per cent in October, the rupee has fallen to an all-time low below Rs 53 per dollar.

With inflation dropping, all eyes are now on the RBI's monetary policy review scheduled for December 16. The central bank has been hiking interest rates since March, 2010, in its bid to tame inflation, but in the last review, the RBI had indicated it may not hike the rates in December.

As per the data released today, inflation in food articles dipped to 8.54 per cent in the month under review from 10.14 per cent in the same month last year. The rate of price rise in food items stood at 14.64 per cent in October, 2011.

On an annual basis, the rate of price rise in the primary articles segment also dropped to 8.53 per cent in November from 14.67 per cent in the same month last year. Inflation in the segment stood at 18.09 per cent in October, 2011.

The data also revealed that inflation in the manufactured products segment was 7.7 per cent in the month under review.

In comparison, it was recorded at 5.02 per cent in November, 2010, and 7.6 per cent in October, 2011.

The data further revealed that rate of price rise in vegetables during the month under review stood at 12 per cent, in comparison to a 1.36 per cent contraction in November, 2010. Inflation in vegetables was as high as 21.76 per cent in October, 2011.

However, onion prices contracted by over 34 per cent in November, in contrast to an increase of 36.82 per cent in the same month last year. Similarly, there was drop in the rate of price rise in potatoes and milk on a yearly basis.

Comments

 

Other News

Farm stability in the time of climate change

Indian agriculture is experiencing significant climate volatility, while the world economy seems to be in a highly volatile situation. Economic indices from various countries show that they need to recalibrate their strategies to withstand economic headwinds. In such a challenging situation, a country li

El Niño threatens India’s Rabi crops

India’s southwest monsoon ended with a 13% rainfall deficit in 2026, its weakest performance in a decade, raising concerns over agricultural production, water security and the upcoming rabi season. With El Niño expected to persist into early 2027, experts warn that declining soil moisture, dep

Regulating the data advantage: India’s new e-Commerce framework

For over a decade, India’s e-commerce story has rested on a simple premise: platforms connect buyers and sellers, while data fuels efficiency, personalisation, and scale. However, as the market matured, its structure has revealed a growing imbalance. E-commerce platforms, especially marketplace ent

Changing weather patterns, climate change responsible for Nepal floods

The interaction between active Western Disturbances, increased atmospheric moisture and the region’s complex topography aswell as global warming are important factors behind intense rainfall in the Himalayas, leading to flash floods in Nepal, according to meteorologists. Nepal

A right she cannot reach

Last summer, the two of us spent several weeks in rural Madhya Pradesh with a non-profit that works on gender justice through women’s self-help groups. We went in with a notebook full of laws. The Protection of Women from Domestic Violence Act. The Dowry Prohibition Act. Free legal aid for every wo

Tier-2 cities lead India’s digital credit push

Digital payments have become a reflex for urban India, but the confidence earned in paying has not yet carried over to borrowing. That is the central finding of `How Urban India Pays Report 2026`, released by Pahlé India Foundation in collaboration with Amazon Pay. Based on a survey of 5,149 consu

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter