Government's move to scrap old Rs 500 and Rs 1000 notes has led to retail inflation easing to 2-year low of 3.63 percent in November this year, mainly on the back of lower consumer spending on various food items including vegetables. As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 stood at 4.13 percent, 3.05 percent and 3.63 percent respectively compared to 4.78 percent , 3.54 percent and 4.20 percent respectively in October 2016 and 5.95 percent 4.71 percent 5.41 percent.
The data also showed that Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for November 2016 declined considerably to 2.87 percent 0.75 percent and 2.11 percent respectively compared to 3.86 percent, 2.33 percent, 3.32 percent respectively in October 2016 and 5.75 percent 6.53 percent and 6.07 percent in November 2015.
The overall food inflation was 2.11 percent last month, lower than 3.32 percent recorded in October. Inflation in vegetables category was in the negative zone at (-)10.29 percent in November this year. However, inflation in fruits stood at 4.60 percent, slightly up from October's 4.42 percent. Cereals and products at 4.86 percent too showed a rise in inflation print during the month against 4.40 percent.
Prices of paan, tobacco and intoxicants rose 6.29 percent from a 7.09 percent rise in October. Inflation in the category of ‘prepared meals, snacks, sweets’ was 5.82 percent in November vis-à-vis 6.17 percent in October. This is a proxy for eating out. Similarly, the growth in prices of non-alcoholic beverages slowed to 3.7 percent in November from 4.13 percent in October.
Food and beverages inflation rose 2.56 percent in November compared with a 3.71 percent rise in October. Clothing and footwear inflation was 4.98 percent and fuel inflation at 2.8 percent -- down from October’s inflation of 5.24 percent and 2.81 percent, respectively.
While the demonetization played a major role in lower inflation numbers, higher base effect too played a part. Going further, lowering inflation will make the context favourable for a rate cut by the Reserve Bank of India (RBI) at its next monetary policy review due in February 2017.
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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