Nine of the 22 states for which data is published had rates higher than the nation's overall inflation rate. Retail inflation, as measured by the consumer price index (CPI), rose to a three-month high of 5.6% in November, up from 4.9% the previous month, led by a rise in vegetable prices and of some food products, posing new challenges for politicians and ambitious prospects for any interest rate cuts for now.
At 7.7%, Odisha witnessed the highest retail inflation rate in November, followed by Rajasthan at nearly 7% and Haryana at 6.8%.Karnataka and Punjab recorded 6.5% each. At 3.1%, Delhi topped the charts of states with the lowest inflation rates, followed by Chhattisgarh at 3.6% and Jammu and Kashmir at 3.8%. West Bengal recorded 4.7% while Kerala had 4.8%.
Price pressures accelerated in November, after the overall inflation rate slowed to a 4-month low in October, bringing some relief to strong price pressures.
The monetary policy committee of the Reserve Bank of India (RBI), in its latest statement, said food price uncertainties, coupled with unfavorable base effects, are likely to lead to a rebound in headline inflation in November-December. Arrival of Kharif harvest and progress in rabi sowing along with El Nino weather conditions need to be monitored, MPC said. “The MPC noted that recurring food price shocks are impeding the ongoing disinflation process. Core disinflation has been steady, which is indicative of the impact of past monetary policy measures. Global inflation, however, remains volatile, with possible implications for the anchoring of expectations. Domestically, the unpredictability of food inflation and the volatility of crude oil prices and financial markets in an uncertain international environment pose risks to the inflation outlook,” said the MPC statement released this week last.
Experts said they expect the inflation rate to moderate in the coming months.