India’s consumer price inflation (CPI) came in at 1.33% in December, undershooting the CNBC-TV18 poll estimate of 1.62%, data released on Monday showed.
Inflation, however, rose on a month-on-month basis from 0.71%, pointing to emerging sequential pressures beneath the headline print.
Food prices remained the key driver of the softer inflation outcome. Food inflation stood at -2.71% in December, compared with the CNBC-TV18 poll estimate of -1.3%, although it narrowed from a sharper -3.91% contraction on a month-on-month basis.
Vegetables continued to see steep deflation at -18.47%, while pulses inflation remained deeply negative at -15.09%, both easing slightly from the previous month.
Rural inflation rose to 0.76% on a sequential basis, up from 0.10%, while urban inflation increased to 2.03% from 1.40%, indicating firmer price pressures in cities.
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Fuel and light inflation cooled marginally to 1.97% from 2.32% on a month-on-month basis, while housing inflation edged lower to 2.86%.
Clothing and footwear inflation also eased slightly to 1.44% from 1.49%. Overall, the December data highlights continued relief from food prices even as core and urban inflation trends show signs of gradual firming.
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