Retail inflation slips to 4.59% in Dec

New Delhi: Declining vegetable prices brought down the retail inflation to a 15-month low of 4.59 per cent in December and within the comfort zone of the Reserve Bank, government data showed on Tuesday. It is for the first time during the current fiscal that the Consumer Price Index (CPI) based inflation print is below 6 per cent or in the RBI's target range of 2 to 6 per cent. The central bank factors in the CPI-based inflation while arriving at its monetary policy.

The inflation in December 2020 came down from 6.93 per cent in November, mainly on account of 10.41 per cent decline in vegetable prices over the year-ago period. The inflation was 7.35 per cent in December 2019. The previous low inflation was 4 per cent in September 2019.

The food inflation, according to the data released by the National Statistical Office (NSO) in the Ministry of Statistics and Programme Implementation, slipped to 3.41 per cent in December from 9.5 per cent in the previous month of November.

The annual inflation in the vegetable basket contracted by 10.41 per cent in December. The rate of price rise in this kitchen essential segment was 15.63 per cent in November.

The inflation in 'cereals and products' was 0.98 per cent in December, down from 2.32 per cent in the preceding month. Similarly, the rate of price rise was slower in the case of 'meat and fish' as well as 'pulses and product' segment.