• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

ReZone

Collect Product Review

  • Home
  • Laptop
  • Mobile
  • Tablet
  • Smart Home
  • TV
  • Audio
  • Gaming

Unfavourable base propels CPI inflation to 5.59% in December 2021

January 12, 2022 by www.moneycontrol.com

Representative image: Reuters

Representative image: Reuters

India’s headline retail inflation jumped to 5.59 percent in December 2021, thanks to an unfavourable base effect.

The latest Consumer Price Index (CPI) inflation print is 68 basis points higher than the November 2021 level of 4.91 percent, data released on January 12 by the National Statistical Office showed. It is the highest inflation has been since July 2021, when it had also come in at 5.59 percent.

Despite the sharp increase in inflation in December 2021, the average for the last quarter of 2021, at 5.0 percent, is marginally lower than expected. The Reserve Bank of India had forecast CPI inflation would average 5.1 percent in October-December 2021.

In December 2021, inflation rose even as the general index of the CPI fell to 166.1 from 166.7 in November 2021, indicating the presence of an unfavourable base effect.

Meanwhile, the Consumer Food Price Index contracted 1.2 percent month-on-month in December 2021, driven by a 5.4 percent sequential decline in the vegetable index of the CPI. However, an unfavourable base meant food inflation climbed to 4.05 percent from 1.87 percent in November 2021.

Close

Non-food, non-fuel inflation, or core inflation, also remained high at 6.1 percent, unchanged from November 2021.

While the latest headline retail inflation print of 5.59 percent is slightly lower than expectations of 5.8 percent as per a Reuters poll, it is the 27th consecutive month in which it has come above the Reserve Bank of India’s medium-term target of 4.0 percent. However, this is unlikely to perturb the Monetary Policy Committee (MPC) when it next meets on February 7-9.

“While CPI inflation has hardened sharply between November and December 2021, the uncertainty triggered by the third wave is sure to take precedence when the MPC meets next month,” said ICRA Chief Economist Aditi Nayar.

“We now see a negligible likelihood of a change in stance or reverse repo hike in the February 2022 policy review. The duration of the current wave and the severity of restrictions will determine whether policy normalisation can commence in April 2022, or be delayed further to June 2022,” Nayar added.

CPI inflation is likely to rise even higher in the coming months, with the central bank having forecast it would average 5.7 percent in January-March 2022.

  • US inflation reaches 2.9 percent in June, highest in 6 years
  • Amazon’s Alexa could be a $19 billion business by 2021, RBC says
  • NASA Remakes the Airplane Wing With Electric Propulsion and a Whole Lot of Propellers
  • Here's Why Boeing Used an Inflatable Spaceship to Test 'Starliner' Landing Recovery Plans
  • Smart Speakers To Surge Past Tablets By 2021
  • Believe It Or Not, Google+ Actually Grew Android User Base In The US
  • ASIC says white-collar crims turning to overseas-based VPNs
  • Mounts Ride Their Way To Conan Exiles This December
  • Beatles, EMI settle $59 mil suit
  • What $10 was worth the year you were born, and what you could buy with it today
Unfavourable base propels CPI inflation to 5.59% in December 2021 have 442 words, post on www.moneycontrol.com at January 12, 2022. This is cached page on ReZone. If you want remove this page, please contact us.

Filed Under: Economy CPI, inflation, CPI inflation, prices, RBI, th7 war base 2021, th7 2021 war base, th7 2021 base, th 7 best war base 2021, th 7 best base 2021

Primary Sidebar

RSS Recent Stories

  • LG’s New UltraGear Lineup Includes 48-inch 138Hz OLED Gaming Display
  • Best Memorial Day Deals: Gaming Laptops, CPUs, Monitors and More
  • Streacom’s Open-Frame SSF Cases Go Totally Tubular
  • AMD’s 600-Series Chipsets Pass PCIe 4.0 Validation
  • Zotac Squeezes Nvidia A4500 GPU Into an 8-Inch Case

Sponsored Links

  • How American stocks could continue to climb
  • Which is The Economist’s country of the year for 2021?
  • After a shocker in 2021, where might inflation go in 2022?
  • The hidden costs of cutting Russia off from SWIFT
  • Has the pandemic shown inflation to be a fiscal phenomenon?
Copyright © 2022 ReZone. Power by Wordpress.
Home - About Us - Contact Us - Disclaimers - DMCA - Privacy Policy - Submit your story