Factory output saw a big 2-year jump in November at 8.4% vs 2.2% in October while CPI crossed the 5% mark at 5.2% from 4.88% a month ago.
These are the final set of data that finance minister Arun Jaitley will have as he sits down to finalize the 2018 Budget. According to Bloomberg analysts’ estimate, IIP was expected at 4% in November.
Rising retail inflation, mostly due to hardening fuel and vegetable prices, would, however, complicate matters for the economy as it may reduce profit margins for companies may raise input costs and reduce any last chances of an interest rate cut by the Reserve Bank of India (RBI) to revive economic growth.
Source: Economic Times