Retail inflation falls to four-month low, food prices ease

The CPI rose 5.22% in December, down from 5.48% in November and 5.69% a year ago

- Nikita Prasad & Rhik Kundu

India's retail inflation eased to a four-month low in December, driven by a slower increase in food prices, according to provisional government data released on Monday.

Retail inflation, based on the Consumer Price Index (CPI), rose 5.22% in December, down from 5.48% in November and 5.69% a year ago, ministry of statistics & programme implementation (MoSPI) data showed.

The latest retail inflation figure was within the Reserve Bank of India's (RBI's) medium-term target of 2-6%.

Food inflation, a persistent challenge, rose 8.39% annually in December compared to 9.04% in the previous month, and 9.53% in the year-ago period.

Food inflation rose by 10.87% in October, 9.24% in September, and 5.66% in August.

A Mint poll of 25 economists had estimated retail inflation at a four-month low of 5.3% in December, driven by the seasonal decline in food prices.

The survey, however, cautioned that despite the expected easing, concerns over food price volatility will likely continue.