Mumbai: India’s inflation declined to a four-month low of 5.22 percent in December as compared to 5.48 percent in the previous month, as food prices provided some reprieve, according to data released on January 14.
December, however, marks the fourth consecutive month of over 5 percent inflation.
India’s food inflation eased below 9 percent for the first time in four months.
High inflation has been one of the reasons that the Reserve Bank of India has refused to budge on policy change.
At its December meeting, the Reserve Bank of India held the policy rate at 6.5 percent for the eleventh consecutive time.
The monetary policy committee is expected to take a call on rates in February after the Budget.
Experts have been pencilling a rate cut in February to bring down the cost of capital and spur the economy.
India’s economy likely slowed down to 6.4 percent in 2024-25, lower than RBI’s estimate of 6.6 percent and the government’s band of 6.5-7 percent growth.
