Nov inflation eases to 9.11% MoM, yet too high

Hopes have been just crushed. November inflation has eased to 9.11% (MoM) vs 9.73 % in October. This is much higher than estimates as most experts were expecting inflation to drop below 9%.CNBC-TV18 poll had estimated it to be 8.93%.

The data shows food inflation tumbled to 8.54% in November from more than 11% in October, while fuel inflation increased to 15.48% from 14.79% and manufacturing inflation increased marginally, to 7.7% from 7.66%.

The RBI has raised interest rates 13 times since March 2010 to try to force inflation down. But despite raising the repo rate during that period to a three-year high of 8.5%  from 4.75%, inflation has stuck above 9% for about year.

Index-wise break up

Nov Primary articles at 8.53% vs 11.4% (MoM)
Nov Primary articles index down 1.6% (MoM)
Nov food group inflation at 8.54% Vs 11.06% (MoM)
Nov fuel group inflation at 15.48% Vs 14.79% (MoM)
Nov fuel group index up 0.9% (MoM)
Nov manufacturing inflation at 7.7% vs 7.66% (MoM)
Nov manufacturing products index Up 0.5% (MoM)