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India’s CPI-inflation creeps higher to 10.79% in January

12 Feb 2013 Evaluate

In yet another disappointment for the street after IIP numbers, annual rate of inflation, based on the consumer prices index (CPI) in India, crept higher in the month of January at 10.79%. According to the data released, provisional annual inflation rate based on all India general CPI (Combined) for January 2013 on point to point basis stood at 10.79% as compared to 10.56% for the previous month of December 2012.

According to the Ministry of Statistics and Programme Implementation, which released the monthly provisional CP on Base 2010=100 along with annual inflation rates for January 2013, all India provisional General (all groups), CPI numbers of January 2013 for rural, urban and combined were at 127.4, 124.9 and 126.3 respectively. The corresponding inflation rates for rural and urban areas for January came in at 10.88% and 10.73% respectively as against December’s 10.74% and10.42%, respectively, which indicated that the rate of price rose in rural areas.

India has the highest retail inflation among the BRICS group of emerging economies - Brazil, Russia, China, and South Africa -- and is way above the Reserve Bank of India (RBI)’s comfort level. However, unlike most central banks, the RBI uses wholesale inflation in its policy formulation, as annual consumer price inflation data was only launched last year in January.

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