December inflation in India likely neared 6% due to food prices

India's retail inflation appears to have inched up in December, largely attributed to higher food prices, signalling a consistent climb for the fourth successive month.

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An economist poll by Reuters forecasted that the consumer price index (CPI) gauge for inflation may have risen to 5.87% in December from 5.55% in November. This ascent, largely steered by elevated food prices, especially vegetables and household staples, keeps inflation figures within the Reserve Bank of India's target range for now.

The survey, conducted among 56 economists, envisioned a range for December's inflation between 5.00% and 6.40%, with nearly one-third of the respondents predicting inflation to touch or surpass 6.00%. The uptick is particularly attributed to soaring food inflation, with pulses, spices, vegetables, and fruit prices contributing significantly to the overall rise in prices, as noted by Kunal Kundu, an economist at Societe Generale.