India's November retail inflation rate drops to 2.33 percent
New Delhi, Dec 12 (IBNS): Lower food prices eased the country's retail inflation for the month of November to touch 2.33 percent, official data released on Wednesday said.
It touched a new figure from a rise of 3.38 per cent in October.
This new figure is the lowest level of consumer inflation since June last year, when it was recorded at 1.46 per cent.
Price data are collected from selected towns and selected villages by the Field Operations Division of NSSO.
"Price data are received through web portals, maintained by the National Informatics Centre," read the government statement.
Reacting to the development, B Prasanna, Head, Global Markets Group, ICICI Bank, said: "Macro data also got a boost from a very benign CPI print aided by low food prices characterized by continued deflation in pulses and vegetables. There is also substantial moderation in core inflation sequentially. We expect CPI to remain below 4% till Q1 FY2020. We also expect a change in monetary policy stance to 'neutral' from 'calibrated tightening' in the February policy and expectations of a rate cut will now start building. However, we should remain cautious as CPI could pick up sharply towards H2 FY2020,” he said.
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