Weak food and fuel prices has moved the December retail inflation measured by CPI inflation to 18-month low of 2.19% vs 2.33% for the month of November. The figure has come in lower than analysts estimates. WPI Inflation also recorded a lower value of 3.8%.
The inflation has stood well below the RBI's target helping the central bank keep interest rate steady.
CPI inflation for food items has been recorded at -2.51% vs -2.61% in November during the month under review. Also fuel and power inflation also came in lower at almost of 4.54%. Vegetable inflation also fell in line to -16.14% vs -15.59% in November.
And with some of the global concerns receding , still there remains some geo-political and economic concerns that led the RBI to revise its inflation outlook to 4.8% for the first quarter of next fiscal.