Retail inflation climbed to a three-month high of 5.55% in November, led by higher food prices.

In October, retail inflation based on the Consumer Price Index (CPI) was at 4.87%. 

Inflation had been declining since August when it touched 6.83%. Retail inflation was 5.88 per cent in November last year.

The rate of price rise in the food basket was 8.7% versus 6.61% in October and 4.67% in November 2022, the National Statistical Office (NSO) data showed.

The Reserve Bank of India (RBI) has the target of ensuring retail inflation remains at 4%, with a margin of 2% on either side.

In the monetary policy announced last week, the RBI projected the CPI inflation at 5.4% for 2023-24, with a reading of 5.6% in the third quarter and 5.2% in the final quarter of FY24.