NEW DELHI: India’s annual retail inflation quickened to 1.33% in December from 0.71% in November, as the decline in food prices moderated, government data showed on Monday.
A Reuters poll had projected retail inflation at 1.5%. The latest print was below the Reserve Bank of India’s target range of 2% to 6% for the fourth straight month.
Food prices fell 2.71% year-on-year in December against a decline of 3.91% year-on-year in November. Vegetable prices fell 18.47% year-on-year after a 22.20% decline a month ago. Benign inflation and high economic growth prompted the Reserve Bank of India to cut interest rates by 25 basis points last month, with expectations of another cut building up.
India’s retail inflation slows to record low of 0.25% in October
India’s economy is estimated to grow at 7.4% in the fiscal year ending in March, helping New Delhi cope with the impact of punitive U.S. tariffs.
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