NEW DELHI, Jan 13 (Reuters): India's annual retail inflation rose at the fastest pace in four months in December, driven by a rise in prices of some food items, raising expectations that the central bank will stay away from interest rate cuts for some time.
Annual retail inflation rose to 5.69 per cent in December from 5.55 per cent the previous month, above the central bank's 4 per cent target, Indian government data showed on Friday.
A Reuters poll of 56 economists had forecast a rate of 5.87 per cent.
Food inflation, which accounts for nearly half of the overall consumer price basket, was at 9.53 per cent in December, up from 8.70 per cent in November as prices of vegetables, pulses and spices rose.
"The outlook for the inflation for certain items like rice, wheat and pulses remains somewhat vulnerable," said Aditi Nayar, an economist at ICRA.
India's retail inflation rises to four-month high
FE Team | Published: January 13, 2024 22:07:07
India's retail inflation rises to four-month high
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