India Inflation Eases To 5.22%, Lowest In 4 Months

(RTTNews) - India's inflation eased further in December to the lowest level in four months amid a slowdown in food prices, data from the National Statistical Office showed on Monday.

Consumer price inflation softened slightly to 5.22 percent in December from 5.48 percent in November. Economists had expected inflation to slow to 5.30 percent.

In the same period last year, inflation was 9.53 percent.

Further, consumer price inflation continued to remain within the RBI's medium-term target of 2-6 percent.

Food inflation moderated to 8.39 percent in December from 9.04 percent in the previous month. The downward trend in food costs was mainly due to a significant decline in the prices of vegetables, pulses and products, sugar and confectionary, personal care, and cereals and products.

Data showed that the housing inflation rate also slowed to 2.71 percent from 2.87 percent. Meanwhile, fuel and light costs were 1.39 percent less expensive compared to last year.

On a monthly basis, consumer prices posted a decrease of 0.56 percent.

During its December meeting, the Reserve Bank of India indicated that interest rate reductions would be delayed and decided to keep the benchmark repo rate at 6.5 percent.