Consumer Inflation Soars To Over Three-Year High Of 5.54% In November

INSUBCONTINENT EXCLUSIVE:
Retail food prices make up nearly half of the CPI inflation basketHighlightsConsumer inflation soars to highest level recorded since July
2016
High food inflation due to surge in vegetable prices fuels CPI
RBI tracks retail inflation primarily for formulating monetary
policy Consumer inflation soared to 5.54 per cent in November, the highest level recorded since July 2016,
official data showed on Thursday
High food inflation driven by a continued surge in vegetable prices, particularly onions, fuelled overall inflation
Gauged by the Consumer Price Index (CPI), consumer inflation was higher than economists' estimate
Thursday's data further dashed hopes of a rate cut by the RBI - which tracks consumer inflation data primarily for formulating monetary
policy - in February
Fifty two economists had expected consumer inflation - or the rate of increase in consumer prices - 5.26 per cent last month,
(RBI) last week kept the key lending rates unchanged at existing levels but acknowledged room for further rate cuts ahead.The central
fifth bi-monthly policy review of fiscal year 2019-20, the RBI cited concern about near-term inflation
It said inflation is expected to rise in the near term but moderate below its goal of 4 per cent by the second quarter of next fiscal
of next financial year citing "broadly balanced" risks.With economic growth at its weakest in over six years, 49 per cent of economists, 33
of 67, in a snap poll taken by Reuters after the Monetary Policy Committee's decision, predicted that this would be a temporary pause and
another cut would come in February
The remaining economists expected no move at the February 4-6 meeting.A firm majority, over 80 per cent economists said the RBI will cut
the year.The RBI currently has an "accommodative" policy stance, which eradicates the possibility of going back to a rate hike suddenly