April 25, 2018

December India's retail inflation grows 5.21 percent

13 January 2018, 05:07 | Kenneth Drake

December India's retail inflation grows 5.21 percent

December India's retail inflation grows 5.21 percent

Analysts polled by Reuters had predicted December's consumer inflation rate would climb to 5.10%, the highest since July 2016, from 4.88% in November.

Core Inflation rose by 1.8%, beating expectations of only a 1.7% rise, the same as November - the Dollar rose and fell in volatile swings after the release of the contradictory data.

Inflationary risks forced the Reserve Bank of India (RBI) to hold its key lending rate unchanged for the third time in a succession at 6 per cent in its penultimate bi-monthly monetary policy review of the fiscal last month.

The United States' consumer price index grew by 0.1 percent in December relative to the previous month and the inflation rate for all of 2017 came in at 2.1 percent, the Labor Department reported Friday.

Weak import and producer price data this week had raised concerns about the inflation outlook, although the two reports do not have a strong correlation with the CPI. The cost of both hospital and doctor visits increased 0.3%.

Low base from November 2016 helps India Inc's output grow 8.4%.

Shelter costs rose 0.4 percent in the month, faster than usual, while medical care increased 0.3 percent and food was up 0.2 percent.

In the coming months, rising crude oil prices, which are at a 3 year high at the moment, could pose an even bigger risk to inflation in the country.

"The outsized core is due to a 1.4% jump in used auto prices - demand rocketed after the hurricanes in the summer, driving up auction prices", said Ian Shepherdson at Pantheon Macroeconomics. Cheaper petrol prices limited the increase in the overall CPI to 0.1% in December after climbing 0.4% in November.

But clothing prices fell for the fourth consecutive month, and airline fares fell 0.5% after a 2.4% drop in November. The statistical impact of an unfavorable base also rose the year-on-year print. Amid talk of whether a bear market in bonds is nigh, a resurgence in the consumer-price index would add to the growing feeling that the 10-year Treasury yield will finally break higher in 2018, after doing little last year.

Meanwhile, despite reports of healthy sales from some stores during the holiday shopping season, department store sales declined 1.1 percent from the prior month, while sporting goods stores fell 1.6 percent. Food away from home grew 0.2%.

Similarly, consumer non-durables' output rose by 23.1 per cent, and that of consumer durables by 2.5 per cent.

Economists, however, said it may be too early to term it as an industrial recovery.

Other News

Trending Now

Donald Trump Plans to Attend World Davos Economic Forum
Trump's inauguration, becoming the first Chinese leader to mingle with the corporate and media crowd in the mountain village. The Global Economic Forum was founded in 1971 by Klaus Schwab, a business professor at the University of Geneva.

Tarrant County reports its first 3 flu deaths
That's why getting the flu vaccination is the safest and most effective way to prevent the flu for everyone 6 months and older. Local ER departments and outpatient clinics are also seeing very high volumes of patients, health officials said.

Video shows man slap Harvey Weinstein at Arizona restaurant
More than 80 women have come forward with accusations of inappropriate behaviour, rape and misconduct against Weinstein. Harvey Weinstein , pictured on January 8, 2017, reportedly declined to call the police after he was struck.

All you need to know about India's 100th satellite
In this context, ISRO has taken four-month interval to revisit some of the core areas. This would be the 42nd flight of the PSLV .

Pierce County Deputy killed in line of duty
Trudi and I are saddened and praying for the deputy's young family as they grieve the loss of their husband and father. Due to the manhunt and ongoing police investigation, the Bethel School District has canceled school on Monday .

Huawei Mate 10 Pro Is Not Coming To US Carriers
Senate and House intelligence committees via a letter sent to the FCC back on December 20. Huawei's plans for growth in the USA led to heightened scrutiny by Congress.

De Bruyne comments on contract renewal
We don't have to take care about that anyway. "It is just the way football goes". 'We go there (Liverpool) to win the game. It has been a tough period for four months now.

Pietrangelo, Schenn to represent Blues in All-Star Game
His.929 save percentage is third in the National Hockey League , and his 2.27 goals against average is tied for fourth. Also being rewarded for his standout season, Schenn lands his first All-Star appearance in his first season in St.

Police Hunt Couple Accused Of Murdering 4-Year-Old
A GoFundMe page initially set up to help her family bury her has since been removed , but a second one has been established. A Washtenaw County Medical Examiner ruled the little girl's death as a homicide, with signs of " Battered Child Syndrome ".

Morning Round-Up: Tesco and Marks and Spencer hold back the FTSE
Non-tobacco sales at Booker Food Group, subject of a £3.7bn Tesco takeover, rose by 5.9% in the third quarter. Group like-for-like sales grew by 0.9% in Q3 and were up by 0.1% in the Christmas period.