New data has revealed that in November, nine states across India witnessed inflation rates surpassing the national average. The cost of living for Indian consumers surged by an average of 5.55% compared to the corresponding period last year.
States with Elevated Inflation Rates: Odisha took the lead with the highest inflation rate at 7.65%, closely followed by Rajasthan at 7%. Notably, Haryana recorded a substantial increase of 6.8%. Additionally, Bihar, Karnataka, Punjab, Telangana, Gujarat, and Uttar Pradesh experienced inflation rates ranging from 5.56% to 6.54%, all exceeding the national average.
Regional Discrepancies: In contrast, Delhi, Chhattisgarh, and the erstwhile state of Jammu and Kashmir reported milder price hikes, with inflation rates at 3.1%, 3.56%, and 3.8%, respectively.
Central Bank's Concerns: In eight states, including Gujarat, Bihar, Punjab, Karnataka, and Telangana, the inflation rate surpassed the central bank’s tolerance threshold of 6%. Uttar Pradesh, with a 5.56% inflation rate, was the only other major state exceeding the national average of 5.55%.
National Inflation Overview: Consumer prices soared to a three-month high, reaching 5.55% in November, up from 4.87% in October. The escalation in food prices drove the inflation surge to 8.7%, primarily fueled by increased rates for vegetables, pulses, fruits, and sugar.
Disparity between Rural and Urban Areas: Rural areas experienced higher inflation levels at 5.85%, surpassing the 5.3% observed in urban regions. Notably, urban consumers faced a sharper increase in food prices, registering at 9.3% compared to 8.4% for their rural counterparts.
Month-on-Month Fluctuations: The Consumer Price Index (CPI) exhibited a month-on-month increase of 0.54%, with rural prices rising by 0.64% and food prices escalating by 1.05% from October levels.
Overall Inflation Trends: November 2022 saw an overall consumer price inflation rate of 5.88%, with the food price index ascending by 4.7%.
Reserve Bank of India's Projections: The Reserve Bank of India (RBI) had forewarned of a November surge in inflation due to escalating vegetable prices. Anticipating an average inflation rate of 5.6% between October and December, the RBI predicts a potential acceleration to around 6.4% in the current month.
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