Investing.com — India’s inflation rate has seen a decrease for two months in a row on a year-on-year basis, registering slightly below the anticipated 5.22% in December. This development strengthens the argument for potential interest rate reductions in the future.
The forecast for December by analysts surveyed by Reuters was a 5.30% inflation rate. The Ministry of Statistics and Programme Implementation’s December data indicates the slowest rate of price increase since August 2024.
In October, the inflation rate in India had reached a 14-month peak of 6.21%, exceeding the Reserve Bank of India (NS:BOI)’s 6% tolerance limit. The Reserve Bank of India’s Governor, Sanjay Malhotra, projected an inflation rate of 4.8% for the fiscal year ending in March 2025, a prediction he made on December 24.
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