By Ed Frankl
Inflation in India hit a four-month high in December, driven by accelerating food prices.
The country's consumer price index rose by 5.69% on year, up from the 5.55% increase in November, according to government figures set out on Friday. It was the second rise in annual inflation in as many months.
Inflation had been expected to pick up a little more, to 5.9%, according to economists polled by FactSet.
Consumer food prices, the largest component that contributes to the index, once again led the increase, rising 9.5% on year, from 8.7% in November, which included vegetable prices jumping 28% on year. Annual inflation for clothing and footwear was 3.6%, while for fuel and light it was 3.6%. However, fuel prices fell 1% compared with a year earlier amid lower global oil prices.
Rising inflation will concern India's central bank, which aims for 4% inflation in the medium term. It has kept its key interest rate at 6.5% for five consecutive meetings.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
01-12-24 0740ET
