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Retail inflation rises to 5.21 pc, dashes rate cut hopes

Press Trust of India  |  New Delhi 

Retail crossed the RBI's comfort level and rose to 5.21 per cent in December on rise in prices of food items, egg and vegetables, dashing hopes of cut in the near future.

The retail inflation, based on Consumer Price Index (CPI), was 4.88 per cent in November. In December 2015, it was 3.41 per cent.

The Reserve has been asked by the to keep at 4 per cent, plus or minus 2 per cent, and its rise beyond the comfort zone will put pressure on the central not cut (repo rate).

As per the data released by the (CSO), for the increased to 4.96 per cent in December from 4.42 per cent in the preceding month.

The data revealed that eggs, vegetables and fruits became costlier, while moderated in case of cereals and pulses.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 18:10 IST