New Delhi. There has been some relief on the inflation front in the country in the month of November. According to the Consumer Price Index data released by NSO, retail inflation declined to 5.48 percent in November 2024 from 6.21 percent in October 2024. This decline in retail inflation is mainly due to softening prices of food items, especially vegetables.
Contribution to decline in food inflation
The inflation rate of food items declined to 9.04 percent in November 2024, whereas it was 10.87 percent in October and 8.70 percent in November 2023. Common consumers have got some relief due to softening of food prices. According to the NSO report, a significant decline has been recorded in the inflation of vegetables, pulses, sugar, sweets, fruits, eggs, milk, spices, transport, communication and personal care products.
RBI increased inflation estimates
The Reserve Bank of India (RBI) last week raised the inflation forecast for the current financial year 2024-25 from 4.5 percent to 4.8 percent. However, the central bank has warned that inflation may remain high in the December quarter due to pressure on food prices.
decline in industrial production
At the same time, a decline has been recorded in the industrial production figures. The growth of industrial production declined to 3.5 percent in October 2024. The main reason for this was the weak performance of mining, power and manufacturing sectors. In the same month last year, the growth rate of industrial production was 11.9 percent.
Slow pace of manufacturing sector
According to NSO, the manufacturing sector output grew by only 4.1 percent in October 2024, whereas the growth in the same month a year ago was 10.6 percent. Mining output grew marginally by 0.9 percent and electricity generation by two percent. Industrial production (IIP) grew by four per cent in the April-October 2024 period, compared to seven per cent in the same period of the previous financial year. According to experts, the decline in demand in the mining and manufacturing sector and the global economic slowdown have affected industrial production.
impact on common consumer
The decline in inflation rate has brought some relief to the common consumers, but the slowdown in industrial production may affect employment and economic growth. Experts say that improvement in global conditions and domestic demand may boost industrial production in the coming months.