Retail inflation eases to 4.38 % in November

Declining for the fifth consecutive month, retail inflation in November dropped to 4.38 per cent, the lowest since the new series of data was introduced in January, 2012, on the back of high-base effect of last year and softening of prices of food items.

The Consumer Price Index-based inflation or retail inflation stood at 5.52 per cent in October, while it was 11.16 per cent in November, 2013.

“The distinct moderation in CPI inflation to 4.4 per cent is admittedly a good sign for the economy; however, this has been on the back of a high base effect last year. It comes over the highest CPI inflation of 11.2 per cent last year. Hence, the signs of decline in inflation should be interpreted with caution,” credit rating agency CARE Ratings said.