Lower Vegetable prices likely to drive Inflation lower

Retail inflation is likely to moderate to 5% in December, mainly on account of a sharp decline in vegetable prices. This is going to be some relief for households that had borne the brunt of costlier items in previous months. Economists say it is due to better supply chains of vegetables and seasonal factors. The low food prices, which have a considerable weight in the Consumer Price Index (CPI), are likely to continue stabilizing inflation in the coming months, giving a good picture of the economy.

 

Source: Economic Times