Indian Inflation Cools Down
Slowdown in soaring vegetable prices helps ease India inflation rate to 6.2 percent
MUMBAI, India (AP) - India's inflation eased in December as vegetable prices fell from the previous month.
The fall in the inflation rate to 6.2 percent could persuade the central bank to hold off from an interest rate hike this month, though the inflation is still far above its target of 4-5 percent.
The inflation rate was down from 7.5 percent in November.
Prices for vegetables dropped by 29.7 percent in December from November, led by onions and potatoes that had soared in cost in previous months. Still, vegetables overall cost 57.3 percent more in December than they did a year earlier.
Food inflation in India is partially driven by an inefficient distribution system that results in some 30 percent of produce spoiling before reaching markets.
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