Consumer price inflation hits 5.41% in November; whole sale inflation still negative

news
14 December 2015

Consumer price inflation in the country accelerated to 5.41 per cent in November, rising for a straight month, despite a still-negative whole sale price inflation, official data released today showed.

Consumer price inflation based on the consumer price inflation was up 5 per cent year-on-year in October.

Food price inflation in November was sharply up at 6.07 per cent, against 5.25 per cent recorded a month ago.

Urban inflation rate rose to 4.71 per cent in November 2015 from 4.28 per cent in November 2014, while rural inflation stood at 5.9 per cent, up from 4.28 per cent in November last year.

Wholesale price inflation based on the wholesale price index, on the other hand, fell for a 13th straight month in November, but a sharp pickup in food prices and a pending wage hike for millions of government employees are likely to keep policymakers worried about potential inflationary risks.

The wholesale price index (WPI) declined at an annual 1.99 per cent in November, driven down by tumbling oil prices, government data showed.

Consumer prices are tipped to have gained for the fourth consecutive month in November, rising an annual 5.4 percent on the back of a jump in food costs.

Higher food prices and anticipated higher government salaries are widely expected to stoke price pressures, making it tougher for the central bank to keep retail inflation around 5 percent by March 2017.





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