In yet another recipe for rate hike, nine month retail inflation numbers, India's main inflation gauge, based on monthly WPI, shot higher at 7.52% for the month of November as against 7% (Provisional) for the previous month of October and 7.24% during the corresponding month in the previous year. These numbers were not only higher than RBI’s comfort level of 5%, but also worse than street’s expectation of eight month high figure of 7%. Shockingly, September inflation figures were revised upwards to 7.05% from 6.46% earlier. Meanwhile, build up inflation rate in the financial year so far was 6.70% compared to a build up rate of 4.84% in the corresponding period of the previous year.
