The annual rate of inflation, based on the consumer prices index (CPI) for month of January, 2014 eased more than expected to a 24-month low of 8.79% as against 9.87% in December, aided by moderation in food prices. Meanwhile the corresponding inflation rates (provisional) for Rural and Urban areas stood at 9.43% and 8.09% respectively. The street was widely expecting January month's Retail Inflation to come in at 9.40%.
According the data, all India General (all groups) CPI numbers of January 2014 for Rural, Urban and Combined stood 139.3, 135.0 and 137.4 respectively, While, inflation rates (final) for rural and urban areas for November 2013 stood at 11.66% and 10.53% respectively.
Food prices for consumers rose 9.90 percent last month from a year earlier, much slower than December's 12.16 percent rise. The Provisional annual inflation rates of January 2014 for Rural, Urban and Combined in respect of ‘food and beverages’ stood 10.67%, 8.20% and 9.90% respectively. Additionally, Provisional annual inflation rates (Combined) for Fuel and light; Clothing, bedding and footwear stood at 6.54% and 9.18% respectively.
However, in a sign of worry, core CPI reportedly came in at 8.11% against the expectation of 8.8%, raising bit of concerns that RBI could yet again hike the interest rates at its April 1 review after surprising investors with a 25 basis points hike last month. The Reserve Bank of India, so far, has raised its benchmark interest rate three times since September in a bid to tame stubbornly high inflation.
According the data, all India General (all groups) CPI numbers of January 2014 for Rural, Urban and Combined stood 139.3, 135.0 and 137.4 respectively, While, inflation rates (final) for rural and urban areas for November 2013 stood at 11.66% and 10.53% respectively.
Food prices for consumers rose 9.90 percent last month from a year earlier, much slower than December's 12.16 percent rise. The Provisional annual inflation rates of January 2014 for Rural, Urban and Combined in respect of ‘food and beverages’ stood 10.67%, 8.20% and 9.90% respectively. Additionally, Provisional annual inflation rates (Combined) for Fuel and light; Clothing, bedding and footwear stood at 6.54% and 9.18% respectively.
However, in a sign of worry, core CPI reportedly came in at 8.11% against the expectation of 8.8%, raising bit of concerns that RBI could yet again hike the interest rates at its April 1 review after surprising investors with a 25 basis points hike last month. The Reserve Bank of India, so far, has raised its benchmark interest rate three times since September in a bid to tame stubbornly high inflation.
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