New Delhi: India’s retail inflation accelerated to 10.79% in January, driven mainly by higher vegetable prices, making policy choices more difficult for the central bank.
Consumer price inflation was 10.56% in December.
In January, vegetable prices rose 26.11%, while prices of oils, fats and cereals and cereal products jumped by 14.98% and 14.9%, respectively.
In January, the Reserve Bank of India (RBI) cut policy rates by 25 basis points for the first time in nine months to boost economic growth after inflation showed signs of moderating. One basis point is 0.01 percentage point.
RBI governor D. Subbarao said on Monday that although growth had moderated significantly, wholesale price inflation still remained high at 7.2% in December.
While the food and beverages category saw prices rise by 13.36%, retail prices in the fuel and light and the clothing, bedding, footwear segments rose 8.51% and 11%, respectively.