India inflation rate lowest since November 2014
It is the lowest inflation rate since November of 2014 as food prices cooled. The slowdown in inflation intensified in the last two months of 2016 after a demonetization campaign slumped currency in circulation, hurting consumption.
Year-on-year, cost of food and beverages rose 1.98% (2.56% in November), provisional estimates showed. The food index alone increased by 1.37% compared to 2.11% in the previous month.
Prices increased less for sugar (+21.06% from +22.4% in November) and fell for pulses (-1.57% from +0.23%) and vegetables (-14.59% from -10.29%) while cost of fruit rose slightly more (4.74% from 4.6%).
Inflation also eased for clothing and footwear (4.88% from 4.98%) and housing (4.98% from 5.04%) but accelerated for fuel and light (3.77% from 2.8%).
The corresponding provisional inflation rates for rural and urban areas are 3.83% and 2.9% (4.13% and 3.13% respectively in November).
A year ago, the inflation rate was higher at 5.61%. On a monthly basis, consumer prices fell 0.61%. ■