Retail inflation in November soars to 4.88%

Published On: 12, Dec 2017 | Source: moneycontrol.com

Moneycontrol News @moneycontrolcom

India’s retail inflation grew at 4.88 percent in November, mainly due an increase in foods and oil prices.

Retail inflation, measured by Consumer Price Index (CPI) hit a seven-month high at 3.58 percent in October, while rising 3.63 percent in November a year ago.

CPI is the main price gauge that the Reserve Bank of India (RBI) tracks.

Combined food price inflation, a metric to gauge changes in monthly kitchen costs, continued to witness a jump, with prices rising 1.58 percent in November from a 1.90 percent rise in October , as compared with percent in 2.11 percent in the same period last year.

Food inflation remained volatile with prices falling in September and firming up in October, as eggs, vegetables and fruits became relatively more expensive.

Consumer vegetable inflation came in at 6.89 percent in November, while prices of pulses continued to fall -23 percent.

Fuel and light inflation, which has seen an uptick in July, grew 2.04 percent in November, as compared with 6.36 percent in October.

Housing inflation nearly grew 7.36 percent in November from 6.68 percent in October.

Last week, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) forecasted that retail inflation will hover around the range 4.3 to 4.7 percent in quarter ended December and March, higher than the previous projection of 4.2-4.6 percent.

The MPC also said that that inflation expectations, i.e., food and fuel inflation, edged up in November. Inflation expectations of households surveyed by the Reserve Bank have already firmed up and any increase in food and fuel prices may further harden these expectations.