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Sunday, January 16, 2011

Inflation climbs again in December...Rate hike imminent


As widely anticipated, India's annual inflation accelerated in December from the previous month, adding to the pressure on the Government and the RBI to rein in spiraling prices of essential commodities in a rapidly growing economy. The point-to-point annual rate of inflation, as measured by the wholesale price index (WPI), stood at 8.43% in December 2010 as against 7.48% in November 2010. The WPI for All Commodities group rose 1.3% to 144.1 from 142.3 for the previous month. October's inflation rate has been revised to 9.12% as against the provisional estimate of 8.58%, the Government said.




WPI Groups - Dec. 2010 Nov. 2010 Dec. 2009

Primary Articles - 16.46% 13% 17.96%

Fuel group - 11.19% 10.32% 4.57%

Manufacturing - 4.46% 4.56% 3.61%

Source: Govt.

Inflation in the crucial Food Articles space was at 13.55% in December 2010 versus 9.41% in the previous month. It was at 20.76% in December 2009. The index for Food Articles group rose by 3.7% to 186.9 in December 2010 from 180.2 in the previous month.

Inflation in Non-Food Articles group stood at 22.31% in December 2010 as against 23.22% in November 2010. It was at 10.47% in December 2009. Inflation in Minerals group was at 27.69% in December 2010 versus 21.54% in November 2010. It was at 12.35% in December 2009.