KEY POINTS:
- India’s inflation rate Y/Y increased to 0.71% vs 0.70% expected in November
- The prior release saw inflation falling to a record low of 0.25%
- The RBI’s inflation target is 4% with a +/-2% tolerance band
- Inflation remains far below the central bank’s target
INFLATION REPORT:
India’s inflation rate increased to 0.71% in November after falling to 0.25% in October. The Ministry of Statistics and Programme Implementation noted that the increase in headline inflation and food inflation during the month of
November was mainly attributed to increase in inflation of Vegetables,
Egg, Meat and fish, Spices and Fuel and light.
Food makes up the largest share of India’s Consumer Price Index (CPI) basket (typically around 46%). This means that swings in food inflation influence significantly overall inflation
India’s inflation rate increases to 0.71% in November, but the Rupee continues to bleed