Published On: Thu, Dec 12th, 2019

Retail inflation jumps in Nov to 40-month high; RBI may keep rates on hold

A vendor sells vegetables at a retail market.

New Delhi: Retail price inflation in November jumped to a 40-month high on higher food prices, reducing the likelihood of the Reserve Bank of India (RBI) cutting interest rates in the next policy meeting in February.

Food inflation rose sharply as unusually heavy rains at the end of the monsoon season hit crop yields and caused a spurt in prices of vegetables such as onions.

This is the second month in a row when the retail inflation has remained above the central bank’s medium-term target of 4%.

Reuters

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