Retail inflation slips to 3-month low in Dec

Retail inflation slips to 3-month low in Dec
India's retail inflation, as measured by the Consumer Price Index (CPI), slipped to three-month low of 9.87 per cent in the month of December 2013 as against 11.16 per cent in November, showed the data released by government on Monday.

The data came as a huge relief to the policymakers, especially the Reserve Bank of India (RBI) as it faces the task of another monetary policy review this month. The softer data is likely to prompt RBI to hold rates again in the upcoming review while also providing some relief to the poll-bound UPA government.

Data showed that food inflation fell to 12.16 per cent in December 2013 from 14.72 per cent in the month before. This drop was mainly led by slower growth in vegetable inflation as it eased to 38.76 per cent in December from 61.6 per cent in November.

RBI is scheduled to review the monetary policy on January 28 and is under pressure to ease lending rates amid slowing economic growth as government keeps its spending under check to meet fiscal deficit target.

Dion Global Solutions Ltd.

Story first published: Tuesday, January 14, 2014, 9:00 [IST]
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