Retail inflation in December rose to its highest since July 2014 on the back of soaring vegetable prices as food inflation hit an over six-year peak, prompting economists to predict that the RBI will continue with its pause on interest rates.
Data released by the National Statistical Office (NSO) on Monday showed retail inflation as measured by the consumer price index rose to a five and a half-yearhigh of 7.4% in December, higher than the previous month’s 5.5% and way above the 2.1% recorded in December 2018. For the first time since July 2016, the inflation figure shot past the 6% upper band of the central bank’s comfort zone.
 

Retail inflation in December rose to its highest since July 2014 on the back of soaring vegetable prices as food inflation hit an over six-year peak, prompting economists to predict that the RBI will continue with its pause on interest rates.
Data released by the National Statistical Office (NSO) on Monday showed retail inflation as measured by the consumer price index rose to a five and a half-yearhigh of 7.4% in December, higher than the previous month’s 5.5% and way above the 2.1% recorded in December 2018. For the first time since July 2016, the inflation figure shot past the 6% upper band of the central bank’s comfort zone.