India’s retail inflation, which is measured by the Consumer Price Index (CPI), eased to one-year low of 5.72 per cent last month, down from 5.88 per cent in November, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Thursday.
Separately, India’s factory output, as measured by the Index of Industrial Production (IIP), rose to 7.1 per cent in November 2022 as opposed to a contraction of (-)4.0 per cent in October.
Last month, the retail inflation print had come to its lowest level since December 2021. The CPI came below the Reserve Bank of India’s (RBI) upper margin of 6 per cent for the first time in the calendar year 2022.
The government has mandated the central bank to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for a five-year period ending March 2026.