Why did inflation cool so much in December?
Jan 14, 10:01

The Consumer Price Index-based inflation (CPI), or retail inflation for December dropped to 4.59 percent from 6.93 percent in November. What was the trigger? Primarily a sharp drop in food prices. The Consumer Food Price Inflation (CFPI), or retail food prices, constitute nearly half of India's inflation index. CFPI rose by only 3.41 percent compared with 9.5 percent in November. Also, vegetable prices contracted by 10.4 percent in December compared with a 15.63 percent rise in November. Cereals rose just 0.98 percent. Prices of pulses, meat, fish, fruits and egg too rose at a lower rate compared with November, indicating a supply glut.

price watch gfx - Jan 14