Retail inflation in India hit 15-month high at 4.88 per cent in Nov, as against 3.58 in Oct, 2017, as food inflation soared. The inflation numbers were worse than what analysts had expected, which was largely around 4.3 per cent to 4.6 per cent.
For the first time economists and analysts are looking at the possibility of an interest rate hike from the RBI in 2018.
Food price inflation witnessed a jump, with prices rising 1.58 percent in November from a 1.90 percent rise in October. Eggs, vegetables and fruits became relatively more expensive in Nov adding to worries.
Meanwhile, in a double whammy of sorts, India's industrial output growth slowed down to 2.2 per cent in October compared to 3.8 percent in September due to poor performance of manufacturing sector.