India’s retail inflation rose to 5.69% in Dec 2023: Data

India’s retail inflation rose to 5.69 per cent in December 2023 up from 5.55 per cent in November last tear with higher food prices stretching household budgets, according to official figures released on Friday.

Food inflation, which accounts for close to half of the overall consumer price index (CPI), shot up by 9.05 per cent from 8.657 per cent in November 2023.

The prices of vegetables, pulses, spices and fruits rose sharply during the month. However, there was some consolation in cooking oil prices declining during the month.

According to the data, vegetables prices shot up by as much as 31.34 per cent durng the month while pulses turned costlier by 2.65 per cent and spices were dearer by 19.05 per cent.

The prices of cereals also shot up by 9.53 per cent.

The consumer price inflation is now above the 4 per cent midpoint of the RBI’s 2-6 per cent target range and will make it difficult for the RBI to cut interest rates to spur economic growth.

The central bank is keen to keep inflation under control to ensure stability.