The December retail inflation has come in at 7.35 percent versus a CNBC-TV18 poll of 6.5 percent and 5.54 percent in the month of November.
The core inflation reading has matched CNBC-TV18's poll for December and reads at 3.7 percent versus 3.9 percent in November.
The fineprint:
The main culprit for inflation shooting above 7 percent is food prices. The vegetable price inflation reading has come at a whopping 60.5 percent versus an already very high 35 percent in November.
Consumer food prices have also accelerated to 14.1 percent from 10.01 percent in November. It is noteworthy that food inflation comprises 40 percent of the CPI basket.
Finance Minister Nirmala Sitharaman will present the annual budget for 2020/21 on February 1 and is widely expected to increase spending on infrastructure and cut taxes, which some economists fear could further fuel prices.
The Reserve Bank of India (RBI) will hold its next policy review from February 4 to 6. The data assumes significance as the RBI in its last monetary policy review maintained the key lending rates on account of rising retail inflation.
Annual retail inflation in December remained above the RBI's medium-target of 4 percent for the third straight month. The retail inflation had touched 7.39 percent in July 2014, according to Refinitiv data.
First Published: Jan 13, 2020 5:34 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
'Lord Jagannath devotee of PM Modi', says Sambit Patra; Opposition lashes out at BJP
May 21, 2024 8:56 AM
Lok Sabha Election 2024: Phase 5 voting concludes with over 57% voter turnout, experts weigh in on key battles
May 20, 2024 11:07 PM
BJP holds meeting in Delhi as polling underway for 5th phase
May 20, 2024 4:21 PM
UP Police arrests man after viral videos shows him voting multiple times
May 20, 2024 2:18 PM