The inflation based on the Consumer Price Index (CPI) in the month of December 2018, has reached an 18-month low at 2.19 per cent. The retail inflation rate or CPI during the month of November 2018 stood at 2.33 per cent and 5.21 per cent in December 2017.
As per the data collected by the Ministry of Statistics and Programme Implementation, food inflation during December 2018 remained in the negative zone at 2.51 per cent as compared to (-) 2.61 per cent in November 2018.
According to the data released the rate of price rise in vegetables, fruits and protein-rich eggs continued to decline. Inflation in Fuel and light came down from 7.39 per cent in November to 4.54 per cent in December 2018. The prices of meat, fish, and pulses, however, saw a marginal increase.
The Reserve Bank, which mainly factors in retail inflation and has been tasked to maintain the inflation near 4 per cent, is now expected to cut interest rate in its monetary policy review next month. In another set of important data released by the government, the inflation rate based on wholesale price or WPI reached an eight-month low to 3.80 per cent in December.