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Just In: November WPI accelerates to 7.52%; worse than street’s expectation

16 Dec 2013 Evaluate

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.

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