Inflation likely fell in Nov on easing veg prices'

BENGALURU: India retail inflation likely fell to 5.53% in November after breaching the central bank's 6% upper tolerance band as the arrival of fresh produce to markets moderated soaring vegetable prices, a Reuters poll of economists found.

- Reuters

The Reserve Bank of India held interest rates steady last week, as predicted in a separate Reuters poll, citing price pressures, despite news of a surprise sharp slowdown in economic growth last quarter.

Inflation unexpectedly rose to a 14-month high of 6.21% in October, driven by the fastest vegetable price rises in nearly four years. An additional import duty imposed on edible oils in September has also increased price pressures significantly.

But inflation as measured by the annual change in the consumer price index (CPI) likely slipped to 5.53% last month, according to the median estimate in a Dec. 4-9 Reuters survey of 56 economists.