Food inflation down 2.90% year on year, fuel index climbs

New Delhi/Mumbai: Food price index dropped 2.90 percent in the year to December 31, while the fuel price index climbed an annual 14.45 percent, government data showed.

In the previous week, the food price index fell an annual 3.36 percent, while the fuel price index rose an annual 14.60 percent.

The primary articles price index was up 0.51 percent, compared with an annual rise of 0.10 percent a week earlier.

[caption id=“attachment_179764” align=“alignleft” width=“380” caption=“Food inflation for week ended December 31 was at 2.9% vs 3.36% for the previous week.”] [/caption]

Earlier in the day, a top economic adviser to the prime minister said that India’s December inflation rate will indicate what action the RBI may take at its 24 January policy review.

“It largely depends upon the decline in inflation we will see in the December numbers,” C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council told CNBC-TV18.

He said that the economy was likely to grow at 7 percent or a little more in the current fiscal year that ends March 31.

Reuters