Retail inflation based on consumer price index (CPI) jumped to 5.59 per cent for the month of December, data released by government showed on Wednesday.
It remained within the Monetary Policy Committee’s target range of 4(+/-2)%.
The inflation figure for the month of November was recorded at 4.91 per cent. The spike in inflation numbers is mainly on account of uptick in food prices.
Food prices, which contribute to nearly half of the CPI, rose 4.05 per cent year-on-year in December, compared with 1.87 per month a month before.
Fuel Price
In addition, prices of fuel & light, clothing & footwear, cereals, milk products, oils and fats also showed a surge in December.
Prices of edible oil rose nearly one-fourth from a year ago.
Retail fuel prices rose 10.95 per cent in December year-on-year compared to 13.35 per cent in the previous month, the data showed.
Core Inflation
Annual core inflation, excluding volatile food and energy prices, was estimated at between 6 per cent and 6.01 per cent in December, according to three economists, compared with 6.08 per cent and 6.2 per cent in the previous month.
The Reserve Bank of India (RBI) mainly factors in retail inflation while arriving at its bi-monthly policy.
Inflation Internals (Year-On-Year)
- Inflation in oils and fats was at 24.3% in December compared with 29.7% in November.
- Vegetable prices were 3% below a year ago. In November prices were 13.6% lower than last year.
- Clothing and footwear inflation was at 8.3% compared with 7.9% in the previous month.
- Housing inflation stood at 3.6%, compared with 3.7% in November.
- Fuel and light inflation stood at 10.6%, compared with 13.4% last month.
- Inflation in transport and communication was at 9.7%, compared with 10% in November.
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