Published: Fri, January 12, 2018
Business | By Tara Barton

December retail inflation grows 5.2 percent

December retail inflation grows 5.2 percent

"We expect the MPC to see through the jump in housing inflation in December 2017 in the upcoming policy review, which would be presented shortly after the Union Budget", she added. At 8.4 per cent, IIP witnessed the biggest jump in two years. The December gain was the smallest advance since a similar 0.1 per cent rise in October.

(Kitco News) - Gold prices have fallen from their four-month highs following stronger-than-expected US inflation data. The Reserve Bank has been asked by the government to keep inflation at 4 per cent, plus or minus 2 per cent, and its rise beyond the comfort zone will put pressure on the central bank not cut interest rate (repo rate).

After keeping its benchmark policy rate at a record low near zero for seven years, the Fed started gradually raising rates in December 2015 with one quarter-point hike in 2015 and another one in 2016.

"The 0.3% m/m gain in core consumer prices in December will reinforce expectations of a Fed rate hike in March and supports our view that the Fed will ultimately increase interest rates by a more aggressive 100bp cumulatively this year", said Paul Ashworth, chief US economist at Capital Economics.

Victorian wins $55 million Powerball jackpot
If the mystery victor has not come forward by tomorrow morning, Tatts Lotto will release the newsagency name. Players may select their own numbers using a Powerball playslip or opt for computer-selected quick picks.

The retail inflation seems to show no sign of decline. Currently, the nationwide average for gas is $2.52, up from $2.35 a year ago, according to AAA.

The cost of medical care increased 0.3 percent, with prices for prescription medication surging 1.0 percent after rising 0.6 percent in November.

Despite the stronger than expected monthly core increase, annual inflation remains relatively muted, increasing 1.8% in December, up from 1.7% in November. Shelter costs rose 0.4%, the most since August, including a 0.4 percent increase in rents and 0.3% in owners' equivalent rent, one of the categories created to track rental prices.

Like this: