New Delhi: India’s retail inflation stood at 5.72 per cent in the month of December, according to data released by the statistics ministry on Thursday. The latest data showed a marginal deceleration from the previous month and a further reduction in retail inflation. India’s retail inflation based on the Consumer Price Index stood at 5.88 percent in November from 6.77 percent in October.
Retail inflation in India had remained above 6 per cent for three quarters till October, well beyond the RBI’s comfort zone. The RBI, in its fight against rising inflation, had already raised the key policy rate by 225 basis points to 6.25 per cent since May to cool down domestic retail inflation, which remained above its upper tolerance limit for nearly three quarters. Was.
Raising interest rates usually reduces demand in the economy, which puts the brakes on inflation. The latest hike was on December 7 last year, when the RBI’s Monetary Policy Committee (MPC) cut the policy repo rate by 35 basis points, besides deciding to focus on “return of accommodation” of monetary policy to ensure inflation. had increased. Moving forward while supporting economic growth stays within target.