Rising for the second straight month, the Consumer Price Index (CPI) or retail inflation jumped to 15-month high of 4.88% in the month of November 2017, as compared to 3.63% during the corresponding period last year and 3.58% in the month of October 2017. The sharp rise in inflation was primarily due rising prices of food products, particularly vegetables, and fuels. November's inflation numbers also breached the Reserve Bank of India’s (RBI's) mid-term target of 4%. The previous high was recorded at 5.05% in August last year. The annual retail food inflation climbed to 4.42% in November from 1.90% in the previous month and 2.03% in the same month last year.
As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 for November 2017, stood at 4.79%, 4.90% and 4.88% respectively, compared to at 4.13%, 3.13% and 3.63% respectively in November 2016. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for November 2017 stood at 4.11% and 4.90%, respectively, compared to 2.79% and 0.75%, respectively in November 2016. The index value of CFPI for combined stood at 141.6 for the month of November.
Within the food segment, Vegetable prices jumped 22.48% year-on-year, the steepest since the double-digit inflation episode in early 2013. Inflation in eggs shot to 7.95% in November on annual basis, compared to 0.69% in the previous month. However, in the pulses segment the print continued to show disinflationary trend as it contracted by 23.53% on annual basis. Besides, fuel inflation quickened to 7.92% from 6.36%, driven by rise in global prices of crude oil. Housing inflation nearly grew 7.36% in November from 6.68% in October.
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