India's CPI Inflation to 7.35 Percent - Shook the Chill

India's CPI Inflation to 7.35 Percent in December 2019 - Shook the Chill


India's Consumer Price Index - the Retail Inflation is on the contrary with the Country's GDP growth, the so-called Economic growth of the Country. Inflation for the month of December 2019 was 7.35 Percent, as compared to 1.97 Percent in January 2019.

The Inflation for December 2019 was said earlier, around 6 Percent by the Market Projection. Due to the price hike in Food Products, the said inflation of 7.35 Percent was happened. What is even more shocking, that the Retail Inflation has breached the RBI's Target of around 6 Percent, earlier it was about 4 Percent.

Consumer Price Index Inflation has been said to be driven by the recent rise in Food Prices. Vegetables were also increased by 60 Percent. Pulses rose by 15 Percent. Food and Beverages were also increased by 12 Percent in the month of December 2019.

The Prices of Cereals, Dairy Products, Clothing and Shoes, Housing and Fuel & Light were also increased substantially. It is noteworthy that the said current Food Inflation, which is the highest in the last Six years.

Following the Inflation numbers, it will be revealed in the forthcoming Central Bank's Monetary Policy Committee, which is scheduled in February 2020. The Current increased in prices has plagued ordinary people, where there is an Economy Slowdown.

If there is a REPO rate hike, then it will affect the Earnings of the Listed Companies. Otherwise, if it happens with another REPO Rate cut or No Change - It will impact with the Retail Investor's FD Money. Currently, the FD rates for one year is less than 7 Percent and the Retail Inflation said to be 7.35 Percent. So, one cannot able to get Inflation adjusted Income through Bank Savings and Deposits.

We know that in the Q2FY20 Earnings season, most of the listed companies were reported with Profits due to Corporate Tax Cut and there is an Economy Slow down and Inflation rate which is seen below 4 Percent. But now, the Scenario changed to Low GDP Growth and Rising Inflation.

The Consumer Price Index (CPI) Inflation was stood at 12.17 Percent in the period of November, 2013 - which was said to be the highest and the lowest level was 1.54 Percent in the month of June 2017.

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