CPI inflation plunges to 4.59% as food prices crash in December
20-Apr-2022
The headline inflation eased sharply in December to 4.59% vis-a-vis 6.93% in November on account of a significant pull back in food price inflation. A favorable base effect also helped in softening of the headline inflation number. Core inflation also eased to 5.55% as against 5.71% in the previous month. The fall in inflation is likely transitory as the base effect evens out while rising crude oil prices are expected to exert upward pressure on domestic prices.