India’s retail inflation rose to 5.69% in December 2023, up from 5.55% in November last year with higher food prices stretching household budgets, according to official figures released today.

Food inflation, which accounts for close to half of the overall consumer price index (CPI), shot up by 9.05% from 8.657% 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% during the month while pulses turned costlier by 2.65% and spices were dearer by 19.05%.

The prices of cereals also shot up by 9.53%.

The consumer price inflation is now above the 4% midpoint of the Reserve Bank of India’s (RBI) 2% - 6% 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.

(Source: IANS)

- Edited for style

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