Industrial workers’ retail inflation declines to 5.41%

Retail inflation for industrial employees decreased to 5.41% in November. From 6.08% in October, primarily as a result of decreasing food prices. According to a statement from the Labour Bureau, annual inflation for the month was 5.41 percent. Down from 6.08 percent for the month before.

Inflation in food was 4.30 percent in November 2022 compared to 6.52 percent in the month before (October 2022). And 3.40 percent in the same month a year prior.

Consumer Price Index-Industrial Workers for All of India for November 2022 stayed constant at 132.5 points compared to October 2022.

The miscellaneous group, which contributed 0.21 percentage points to the overall change. They exerted the greatest upward pressure on the present index. The increase in the index can be attributed to a number of items, including wheat, wheat atta, buffalo milk, cow milk, dairy milk, eggs from hens, sunflower oil, onions, dry chilies, cooked meals, doctor’s and surgeon’s fees, hospital/nursing home costs, and bus fares, among others.

However, it claimed that this growth was primarily restrained by a variety of foods that put downward pressure on the index, including apple, banana, orange, brinjal, cabbage, carrot, cauliflower, cucumber, gourd, lady finger, and tomato.

At the center level, Chhindwara gained 3.0 points, followed by Korba with a highest increase of 4.4 points. Among other centers, 2 centers had an increase of 2 to 2.9 points, 8 centers saw an increase of 1 to 1.9 points, and 29 centers saw an increase of 0.1 to 0.9 points.

Retail inflation in India

Raipur came in second with 2.0 points, followed by Coonor and Solapur with a maximum reduction of 2.2 points apiece. Among others, 12 centers saw a drop of 1 to 1.9 points, while 28 centers saw a drop of 0.1 to 0.9 points. The index of the remaining four centers stayed constant.

Every month, the Labour Bureau, a department of the Ministry of Labour & Employment, compiles the Consumer Price Index for Industrial Workers based on retail prices gathered from 317 markets dispersed across 88 of the nation’s major industrial hubs. On the last working day of the next month, the index is created for 88 centers as well as All-India.

Retail inflation in India reached an all-time low of 1.54% last month. Much below the Reserve Bank of India’s (RBI) goal levels of 2% for the first half and 4% for the medium term. Although the industrial sector did expand by around 1.7% in the year to May. It is expected to slow down in July as a result of India’s adoption of the Goods and Services Tax (GST).

Promoting consumer spending is one approach to drive up inflation in these areas. This is necessary because the effects of the low retail inflation. When combined with the negative effects of the demonetisation issues and the high real interest rates. May have greater effects on the entire economy and lead to some degrees of disinflation.