Retail Inflation in Dec’23 rises to four month-high of 5.69%

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Retail inflation again increased for second time in a row to 5.69 per cent in December 2023. CPI based inflation has now reached to four-month high levels in the month under consideration. Rural inflation has risen to 5.93 per cent. While, urban inflation inched to 5.46 per cent.

The CPI based inflation print has increased in December on back of rise in food item prices especially vegetables. It is the rise in food prices which has been driving inflation in India. Food inflation increased for second month in a row to 8.70 per cent in December 2023.

Food items whose prices have zoomed painfully in last one year are pulses, tomato, onion and spices. Off late, fruit prices have also begun to augment in the country.

Pulses and products inflation continue to trouble the government. December pulses inflation print came in at worrisome levels of 20.73 per cent. It has continued to rise in double digits in the last seven months.

Vegetable inflation increased for second month in a row in December to high levels of 27.64 per cent.

Highly spiced inflation: Spices inflation has also remained in double digits. In December 2023, CPI Inflation print for spices came in at 19.69 per cent.

Fruit inflation was on the lower side in last one year. But off-late, it has started showing pick up from June 2023 onwards. Fruit inflation has risen continuously for last seven months. Fruit inflation rose for seven straight month in December 2023 to 11.14 per cent.

Cereals and products inflation too has been headache for government for quite a long time now. December 2023 print for cereals and products inflation came in at 9.93 per cent.

Personal care and effects inflation too has also been elevated for past few months now. Personal care and effects inflation was at 7.28 per cent in December 2023.

Good news for non-vegetarians: Egg, milk and meat & fish inflation all have fallen in December 2023.

Meat and fish inflation has fallen for last three consecutive months. It fell for third straight month in December to 1.15 per cent. Egg inflation also fell to 4.36 per cent in the month under consideration. While, milk inflation also fell for third straight month in December to 5.07 per cent.