Benchmark inflation rate, measured by the Consumer Price Index (CPI), firmed up to 4.91 per cent year on year in November on the back of a rise in vegetable prices, data released by the Ministry of Statistics and Programme Implementation on Monday showed. 

With this, the CPI has remained within the tolerance level of 2 to 6 per cent for the fifth consecutive month. According to the Monetary Policy Committee’s official mandate, the rate-setting panel is supposed to keep inflation in a band of 2-6 per cent, with the medium-term target being 4 per cent. A Reuters’ poll of economists had pegged November’s retail inflation reading at 5.10 per cent. 

Core inflation, which is the non-food, non-fuel component of the CPI basket, stood at 6.1 per cent against 5.8 per cent seen in the month before. Inflation in the food basket in November rose to 1.87 per cent from 0.85 per cent a month ago. 

Fuel and light inflation came in at 13.35 per cent against a rise of 14.35 per cent seen in October. 

In the October retail inflation reading, CPI had ticked up to 4.48 per cent year on year, mildly higher from the five-month low reading of 4.3 per cent in September 2021. The mild firming up of inflation in October was on account of hardening of food and beverages and fuel and light inflation relative to the month before. October CPI was within the tolerance level, but the core CPI was higher at 5.8 per cent in October, a four-month high. In November 2020, the reading was at 6.93 per cent.