Inflation to moderate in December: Mayaram

Softening in food prices is expected to cool food inflation

Inflation will moderate in December, a senior finance ministry official said on Wednesday, as a softening in seasonal vegetable prices is expected to cool food inflation.

"We will see that the prices will have moderated greatly and therefore, the inflation numbers are likely to come down at end of December," Arvind Mayaram told reporters on the sidelines of a G20 conference.

The Reserve Bank of India (RBI) unexpectedly kept the country's policy interest rate on hold on Wednesday, despite calling current inflation too high, citing the prospect of easing retail prices and its concerns about the weak domestic economy.

Headline inflation quickened to 7.52% in November, a 14-month high, after food prices rose at the fastest clip since June 2010.