In yet another data raising concern over the state of economy, retail inflation for the month of November has hit a three-year high of 5.54 percent, government data showed on Thursday, 12 December.
Retail inflation has shot up sharply from 4.62 percent in October, mainly on back of food inflation which rose to 10.01 percent, compared to 7.89 percent October and (-) 2.61 percent in the same month, last year.
Meanwhile, Index of Industrial Production (IIP), or factory output for the month of October registered contraction by 3.4 percent, as compared to a growth of 8.4 percent in the same month last year.
The IIP had contracted 4.3 percent in September.
IIP witnessed a slowdown in the manufacturing sector, which declined by 2.1 per cent in October as compared to 8.2 per cent growth a year ago.
At current levels, inflation has stayed above the mid-point of India’s 4 (+/-2) percent inflation target for the second straight month. Taking note of the rising inflation, the Monetary Policy Committee paused a year-long interest rate cutting cycle in December.
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