The consumer inflation surged to a 3-year high of 5.54 per cent in November on costlier food items, the government data released on Thursday showed.
The consumer inflation surged to a 3-year high of 5.54 per cent in November on costlier food items, the government data released on Thursday showed. The inflation based on Consumer Price Index (CPI) was 4.62 in October and 3.99 per cent in September. The previous high of CPI was 6.07 in July 2016. It was expected at 5.22 per cent year-on-year in November, according to a Bloomberg survey. The inflation was recorded at 10.01 per cent as against 7.89 per cent last month. The Reserve Bank of India (RBI) has been mandated by the government to contain inflation in the range of 4 per cent, with a margin of 2 per cent on either side.
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“The MPC recognizes that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture. Accordingly, the MPC decided to keep the policy repo rate unchanged and continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target,” RBI governor Shaktikanta Das said in his policy statement.
In a separate development, the industrial production shrank by 3.8 per cent in October, mainly due to poor performance by power, mining and manufacturing sectors, according to official data. The factory output, as measured in terms of Index of Industrial Production (IIP), had expanded 8.4 per cent in October 2018. A slowdown was witnessed in the manufacturing sector, which declined by 2.1 per cent in October as compared to 8.2 per cent growth a year ago. Power generation dipped sharply by 12.2 per cent in October, compared to 10.8 per cent growth in the year-ago period. Mining output too fell 8 per cent in the month under review as against 7.3 per cent growth in the corresponding period last fiscal.