Wholesale Price Index grows by 5.25% in January month

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However, even if headline inflation missed forecasts this time, the data still confirm that consumer prices are rising rapidly in the U.K. At 1.8% last month, inflation is now at the highest level since June 2014 and firmly above the 0.3% printed in January past year. Prices of vegetables and pulses dropped 15.62% and 6.62%, respectively.

"Given a continued increase in crude oil prices, the fuel and power prices could rise further with government deciding to keep the subsidy levels unchanged in the 2017-18 budget", Care Ratings added.

Inflation rate of meat and fish, however, increased to 2.98 per cent in January, while that for fruits stood at 5.81 per cent.

On a monthly basis, inflation fell 0.5 last month, compared with a 0.5% increase recorded in the previous month and in line with analysts' expectations.

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The buildup of inflation rate in the financial year so far was 5.31 per cent against a build-up of (-) 0.40 per cent in the corresponding period of the previous year.

The team forecasts China's annual inflation rate to be contained at 2.6% even with a strong rise seen in January.

It is notable that in his most recent inflation report, Bank of England governor pushed up his outlook for United Kingdom growth, but left his outlook for inflation unchanged.

China's consumer inflation quickened in January due to holiday effects, while prices at factory gates rose faster than expected following soaring oil and gas prices, official data showed Tuesday.

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Food inflation was in the negative zone for the second month running, with index down 0.56% in January from that a year ago.

Last month's inflation, down from 5.69 per cent in January 2016, was lowest in at least over three years. In December, the growth in inflation was reported at 3.41 per cent which was largely due to fall in the price of perishable items like fruits an vegetables.

The Pound has dropped by around -1.2% against the South African Rand today due to a weaker-than-expected outlook for United Kingdom inflation.

According to Ecowrap, SBI's ERD expect CPI and core CPI to inch up in the subsequent months as components like education will start to increase because of seasonality.

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The DIPP also revised upward inflation estimate for November to 3.38% from the earlier provisional estimate of 3.15%.