FX.co ★ India Inflation Accelerates In November

India consumer price inflation accelerated in November on food prices, data from the Ministry of Statistics & Programme Implementation showed Tuesday.

The consumer price index registered an annual increase of 5.55 percent in November, following October's 4.87 percent gain. The actual inflation was slightly better than economists' forecast of 5.7 percent.

Food price inflation advanced to 8.70 percent from 6.61 percent in the previous month.

Data showed that food and beverages prices logged a notable growth of 8.02 percent. Clothing and footwear prices moved up 3.9 percent and housing cost gained 3.55 percent. Meanwhile, fuel and light cost dropped 0.77 percent.

On a monthly basis, consumer prices gained 0.54 percent in November.

Last week, the Reserve Bank of India left its benchmark rates unchanged for the fifth straight session citing the risk of food price shocks derailing the disinflation process.

Governor Shaktikanta Das cautioned that a pick-up in headline inflation in November and December is likely due to uncertainties in food prices and warned of second round effects from the same. The RBI projected consumer price inflation to be 5.4 percent for 2023-24.