India’s retail inflation rose to 4.91% in November from 4.48% in October, government data showed on Monday. Retail inflation, which is an indicator of price rise, climbed to a three-month high in November.

The inflation in prices of food and beverages, clothing and footwear and housing increased during the month, offsetting the effect of reduction in taxes on fuel.

On November 3, a day before Diwali, the Union government announced that petrol would become cheaper by Rs 5 and diesel by Rs 10 on account of a reduction in excise duty. The reduction took effect on November 4.
Before the announcement, fuel prices had risen to record high levels across the country.

Vegetable price indices, in particular, rose sharply in both rural and urban areas. Inflation in food and beverages stood at 2.6%, as compared to 1.8% in October.

The consumer price index inflation increased more sharply in urban areas (5.54%) than in rural areas (4.29%). The consumer food price index stood at 1.87% in November, as compared to 0.85% in October.