Inflation drops to 18-month low in December

New Delhi, January 14

Continued decline in food prices pulled down retail inflation to an 18-month low of 2.19% in December 2018, creating headroom for the RBI to cut interest rate in its monetary policy review next month.

Another set of official data showed that the wholesale inflation too eased to an eight-month low of 3.80% in December on softening fuel and food prices. The inflation based on the Consumer Price Index (CPI) was 2.33% in November and 5.21% in December 2017.

According to the data released today, food inflation remained in the negative zone at 2.51% compared to (-) 2.61% in November. — PTI