What was showing up just in your grocery bills is now showing up on the economic report card as well but not as sharply. Consumer Price Index (CPI) which measures the retail price rose to 4.91% in the month of November vs 4.48% in October. The food price inflation was at 1.87% for November registering a sharp jump from the previous month.
Higher LPG prices as well soaring price of cooking essentials such as tomatoes are the single biggest reason pushing the inflation reading in the mid-range of the RBI's 'tolerance level'.
Tomatoes are retailing at whopping Rs 100/kg in parts of the country since the start of the month due to unseasonal rains which have damaged crop and domestic LPG cylinders selling north of Rs 1000 is also adding to the price pain. But even then the RBI Governor has allayed concerns stating in the recent policy that the worst of the price rise will be over in the next 3 months.