The January CPI inflation has come in at 8.79 per cent, which is much better than expected, thanks to a sharp drop in food inflation.

Food inflation saw a sharp drop to 9.9 per cent, which pushed the CPI inflation to a two year low.

Today's CPI inflation numbers remain heartwarming and raises the prospect of the RBI holding policy rates in its next meeting.The Urjit Patel Committee it maybe recalled had targetted the CPI Inflation to 8 per cent by Jan 2015.

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