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LATEST NEWS UPDATES | Inflation at 11-month low, eases to 5.88%

Inflation at 11-month low, eases to 5.88%

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published Published on Dec 13, 2022   modified Modified on Dec 13, 2022

-Hindustan Times

Retail inflation in November dipped below 6% for the first time in 11 months, beating analyst estimates, on the back of a sharp deceleration in food prices, especially of vegetables and edible oils, although a spike in cereal prices is a matter of concern.

New Delhi: Retail inflation in November dipped below 6% for the first time in 11 months, beating analyst estimates, on the back of a sharp deceleration in food prices, especially of vegetables and edible oils, although a spike in cereal prices is a matter of concern. The headline reading, as measured by the Consumer Price Index, came in at 5.88% for the month, although core inflation remained sticky at 6.1%, which, along with the Reserve Bank of India’s hawkish tone in the last policy, suggests that the central bank’s monetary policy committee (MPC) could push ahead with an anticipated increase in the interest rate in February. Some analysts, however, said much would also depend on the December inflation reading that comes out in January.

“With a material shift in global commodity prices, especially crude, we expect inflation to continue to moderate into the target range, most likely in early 2023,” Rahul Bajoria, MD & head of EM Asia (Ex-China) Economics, Barclays, said in a note, adding that his expectation is that inflation will be 6% in the current quarter.

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Hindustan Times, 13 December, 2022, https://www.hindustantimes.com/india-news/inflation-at-11-month-low-eases-to-588-101670869419953.html


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