India: Consumer price inflation jumps in December
January 14, 2020
Consumer prices rose 1.21% in December compared to the previous month, up from 0.95% in November. The increase was largely due to more expensive food and beverages, which, as a category, account for over half of the weight of India’s consumer price basket.
Consumer price inflation accelerated to 7.4% in December from 5.5% in November, mainly due to surging food and beverage prices. As a result, inflation rose above the Reserve Bank of India’s (RBI) target range of 2.0%–6.0%.
Wholesale prices rose 0.41% in December from the previous month, up from the 0.25% increase in November. Wholesale price inflation, meanwhile, accelerated to 2.6% in December from 0.6% in November.
Author: Edward Gardner, Economist