Retail inflation eases to 4.59% in December, back within RBI's target range

New Delhi, Retail inflation declined to 4.5% in December 2020 compared with 6.93% in November last, government data showed on Tuesday.

The data released by the Ministry of Statistics and Programme Implementation showed that the easing of the Consumer Price Index (CPI) came on the back of a decline in food prices.

The Consumer Food Price Index (CFPI) for last month came in at 3.41%, down from 9.50% in November 2020.

The provisional rural CPI in December 2020 was recorded at 4.07%, down from 7.20% in the previous month. The urban CPI was 5.19% last month, compared with 5.19% in November 2020.

The ease in retail inflation for the second consecutive month is a major development as it may give an impetus for a rate cut in the next meeting of the Reserve Bank of India's Monetary Policy Committee.



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