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Thursday, December 12, 2013

India:Twin trouble: Inflation over 11%, factory output dips 1.8%

New Delhi: Retail inflation rose sharper than expected in November on the back of soaring food and vegetable prices, while industrial output fell for the first time in four months in October, raising fresh doubts about the health 

of the economy. 
    The two sets of numbers will pile more pressure on the government, which is battling voters' anger, as househo
ld budgets are stretched and a contraction in industrial activity will hurt jobs. 
    Food prices continued to exert pressure, rising an an
nual 14.7% in November, while vegetable prices shot 
up 61.6% year-on-year. 

FOOD FOR WORRY 
Inflation rises to 11.2% in November, against 10.1% last month. 14.7% rise in food prices in Nov 2013 year-on-year 
Any hope of an interest cut in RBI review next week dashed 
Industrial output contracts by 1.8% in October 2013. IIP rose by 8.4% in Oct 2012


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