India manufacturing growth jumps to 5-month high in Nov: HSBC PMI
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The survey also showed both input and output prices rose sharply in November, after rising at a slower pace in October.
That could put renewed pressure on India's headline inflation rate which at 7.5 percent in October, is well above the Reserve Bank of India's commonly perceived comfort zone around 5 percent.
"Inflation picked up again as higher raw material prices increased input costs for firms and they had enough pricing power to pass these on to end consumers due to the firm demand conditions," Eskesen said.
The central bank has held interest rates steady since April, citing high price pressures, even as many other central banks around the world have cut rates.
It has, however, cut the cash reserve ratio from 6.00 percent to 4.25 percent between January 2011 and October this year to prevent a potential liquidity crunch in financial markets.
With growth slowing in recent months, the din for a rate cut from financial markets has grown louder. But Eskesen said the PMIs suggest the central bank should not ease rates.