Rising food prices keep inflation at 11-year high

The easing of key price indices makes the context favourable for a rate cut by the Reserve Bank of India (RBI) at its next monetary policy review due in Februray 2017.

The string of holidays including Diwali in November last year where factories were shut could also partly explain fall in industrial output during the last year, making production growth look larger in 2016.

Factory output measured in terms of Index of Industrial Production (IIP) got a push in November 2016 due to better performance of manufacturing, mining and electricity sectors coupled with larger offtake of capital goods, considered a barometer of investment.

The factory output, as per the Index of Industrial Production (IIP), declined by 1.81 per cent in October and a 3.4 per cent slide in the corresponding month of past year.

The Consumer Price Index (CPI)-based inflation stood at 3.63 per cent in November 2016, as per the data released by the Ministry of Statistics and Programme Implementation.

Similarly, electricity generation grew at 8.9 per cent in November compared to a meagre 0.7 per cent a year ago.

Ratings agency Crisil said the lowest food inflation in 2 years was "a result of cooling prices thanks to good agricultural supply, cash crunch-led slide in price of perishables and a high base".

Def Leppard to roar in Charlottesville
Joe Elliott said of the upcoming tour "We're thrilled to be able to take this tour to cities we didn't play in 2016". The Def Leppard Rock Brigade Concert Club presale begins Tuesday at ; .

However, during the April-November period the sector recorded a contraction of 0.3 percent compared to a growth of 3.9 percent.

Inflation rate moved from 9.55 percent in December 2015 to 18.55 by December 2016, defying predictions that put 2016 year-end inflation at 12 percent.

During April - November, industrial production rose 0.4% compared to 3.8% during the corresponding period of previous year.

Capital goods production increased by 15 per cent in November compared to a decline in production by 24.4 per cent earlier.

The mining sector output growth was at 3.9% in November, compared with -1.1% in October and -3.1% in September.

Food inflation in December stood at 1.37 in December 2016 against 2.11 per cent in November and 6.40 per cent in December a year ago. Other protein-based food items such as meat and fish became dearer by 4.79 per cent.

However, inflation in fruits came in at 4.74 per cent, slightly up from November's 4.60 per cent. Cereals and products at 5.25 per cent too showed a rise in inflation print during the month against 4.86 per cent in November.

Related Articles

  • Ivanka Trump goes public about exiting fashion label and Trump Organization

    Ivanka Trump goes public about exiting fashion label and Trump Organization

    The Trump attorney said the process of selling the company would create new conflicts of interest. Here's what will happen to those businesses as he moves into the White House.
    Does Trump-Alibaba powwow signal de-escalation in trade wars?

    Does Trump-Alibaba powwow signal de-escalation in trade wars?

    They also discussed the China-U.S. relationship, which should be "strengthened" and "more friendly", according to Ma. The US Chamber of Commerce estimates trade with China already supports over 40 million jobs in the US.
    Preston 1 Arsenal 2

    Preston 1 Arsenal 2

    Most of the first-half opportunities fell to the Championship outfit, as the Gunners failed to trouble in the opening 45 minutes . A second did not come though and the game became much closer and more hard fought and there were chances at both ends.
  • Jim Furyk named as United States Ryder Cup captain for 2018

    Jim Furyk named as United States Ryder Cup captain for 2018

    Europe have already named Thomas Bjorn as their captain for the encounter at Le Golf National just outside Paris. He set a PGA Tour record in August with a 58 in the final round of the Travelers Championship.

    Latest Windows 10 Test Build Previews Key New Features

    Starting with this update you can now open up an InPrivate window for Microsoft Edge from the taskbar icon by right clicking. We broke down the most important ones to make you have a clear understanding of what this update has to bring.

    U.S. sanctions five Russian officials for human rights abuses

    Bastrykin heads the Russian Investigative Committee, the government body that decides whether to bring criminal charges. State and Treasury Departments added to the "Magnitsky list" for human rights abuses, the Guardian reported .

    Rounding out the superhero slate will be DC's Legends of Tomorrow, which will also get a third season this fall. He was born in 1997, or three years before the prime-time soap ended its decade-long run on Fox.
    Boris Johnson on his way to meet with Donald Trump's aides

    Boris Johnson on his way to meet with Donald Trump's aides

    Downing Street has repeatedly dismissed Farage's offer to help her build a relationship with Trump's administration. The Prime Minister and Mr Trump are due to meet in Washington within weeks of his inauguration on January 20.

    Patriots Open As 16-Point Favorites Against Texans, Set Franchise Record

    You put together the process and the winning formula and you need to go out and execute it. "If you don't execute it, you lose". We talked about that over the course of the whole season, but none of that stuff really matters if we don't do that this week.
  • Turkish Cypriot leader says no taboos in United Nations  talks

    Turkish Cypriot leader says no taboos in United Nations talks

    A working group of senior technical experts will meet January 18 in Geneva to hold discussions on critical security issues. The possibility of a reunification pact could hinge on a resolution of security guarantees for a unified Cyprus.
    NAIAS: Volkswagen Tiguan long-wheelbase

    NAIAS: Volkswagen Tiguan long-wheelbase

    Cargo capacity has also been boosted as a result of the body stretch, though Volkswagen is yet to reveal official figures. Fancier models will offer Volkswagen's trick reconfigurable " digital cockpit " instrument display as an option.
    Abbotsford's Juulsen, Team Canada playing for gold

    Abbotsford's Juulsen, Team Canada playing for gold

    It was Terry's fourth shootout goal in two days as he scored three in the semifinal game against Russian Federation on Wednesday. After all, he was on the ice for almost 60 more minutes than the next-highest player in terms of ice time.