RETAIL INFLATION ROSE SHARPLY THAN EXPECTED IN NOVEMBER ON THE BACK OF SOARING FOOD AND VEGETABLE PRICES.
INDUSTRIAL OUTPUT SHRANK IN OCTOBER BY 1.8%,RISING FRESH DOUBTS ABOUT THE ECONOMY”S HEALTH.
THE TWO SETS OF NUMBERS WILL TURN THE SCREWS ON THE GOVERNMENT,ALREADY FACING VOTER”S ANGER:AS HOUSEHOLD BUDGETS
ARE STRETCHED AND A CONTRACTION IN INDUSTRIAL ACTIVITY WILL HURT JOBS.
FOOD PRICES ROSE AN ANNUAL 14.7% IN NOVEMBER,WHILE VEGETABLE PRICES SHOT UP 61.6% YEAR-ON-YEAR.
RETAIL INFLATION IN NOVEMBER ROSE 11.2%,HIGHER THAN THE PREVIOUS MONTH”S 10.1%.
THE SPIKE IN RETAIL INFLATION ALSO DASHED ANY HOPE OF CUT IN INTEREST RATES.

(SOURCE:TIMES OF INDIA)