No, not Independence Day. Yesterday was inflation day.
Retail inflation data for the month of November was released yesterday by the gov and it has come in at a 3-month high.
Retail prices for a bunch of things that we use every day went up 4.91% in November 2021 compared to where they were in November 2020. And this is despite the significant cuts to fuel prices which the central government had ordered as sort of a Diwali gift.
But 4.91% is not too bad actually, it's well within the RBI's target of 2-6%. Vegetable prices were largely under control with the notable exception of Tomatoes because of the heavy rains down south.
Economists, however, were expecting the CPI inflation number to be lower. The team at ICRA believes that input prices are going up, forcing producers to raise their prices as well. As a result, the full benefit of the Rs 5 and Rs 10 cut in petrol and diesel prices is not being felt by consumers.