Coal news and updates

India October consumer price index increases to 5%

India Coal Market Watch

 November 13: The consumer price index based inflation, the primary gauge of central bank, rose to 5% in October versus 4.41% in the previous month, data released by the central statistics office showed on November 12.

 However it was more favourable than RBI’s comfort zone of 6% by January 2016. RBI cut repo rate for the fourth time this year in September, leaving repo rate at 6.75%.

 With the inflation trajectory on an upside, the September was probably the last interest rates cut by the central bank for the fiscal.

 The retail food inflation shot up to 5.25% in October versus 3.88% in August mainly on account of supply shortage in pulses.

 Food & beverage inflation in October was up at 5.36%.

 Pulses recorded a 33.25% inflation. The government on November 12 offloaded over 4,660 tons of seized pulses in the market to check prices and boost availability.

 The domestic demand in the economy has failed to pick up despite easing of interest rates by the central bank, which has in turn led to a cut in lending rates by banks and eased EMI pressure to an extent.

 Clothing and footwear inflation eased to 5.62% from 6% in September.

 The fuel inflation eased marginally to 5.32% in October versus 5.42% in the previous month.

 CPI index underwent a base year revision from 2010 to 2012 in February.