India’s wholesale inflation eased to 2.31 percent in January from 2.37 percent a month ago, according to data released by the government on February 14.
Earlier this week, retail inflation declined to a five-month low of 4.31 percent in January compared with 5.22 percent in the previous month, as food inflation declined.
Core inflation, however, rose in January compared with the previous month, with both the services and the non-food goods category recording a rise.
Services inflation rose to 3.6 percent from 3.5 percent earlier, while core inflation (excluding services) rose to 3.9 percent.
The retail inflation data supported the RBI action a week ago, where the monetary policy committee decided to cut rates after a hiatus of nearly five years.
The policy rate was reduced to 6.25 percent from 6.5 percent earlier. Experts indicate that further action on the policy front may not be as forthcoming, as the US Fed becomes more cautious and a weaker rupee deters the RBI from instituting further cuts.
The MPC kept the policy stance as neutral, indicating flexibility.
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