India's retail inflation hits two-year-low in November

The government data on Tuesday showed that India’s annual consumer price inflation is lower at 3.63 pc in November as against 4.20 pc in October.

This is the lowest level in two years, helped by a sharp cooling in food prices. However, economists as surveyed by Reuters had expected annual retail inflation to come in at 3.90 percent last month, compared with 4.20 percent in October.

This could possibly be due to demonetisation decision taken by  Prime Minister Narendra Modi government, as announced on November 8. After demonetisation the country has seen extreme cash crunch not only in the markets but also people are grappling with long bank queues, ATM rush and dry ATMs at most places.

In November, food inflation was 2.11 percent, lower than 3.32 percent recorded in October.