Expert Views: November consumer inflation at record low

MUMBAI (Reuters) - India's annual consumer price inflation eased for a fourth straight month in November to 4.38 percent, its lowest level since the government started releasing the data in 2012, government data showed on Friday.

The latest number was lower than a Reuters poll forecast of 4.50 percent and October's 5.52 percent print.

COMMENTARY

BILL ADAMS, SENIOR INTERNATIONAL ECONOMIST, PNC FINANCIAL SERVICES GROUP

"Paralleling global developments, a decline in oil prices anddownward pressure on commodity prices generally is cooling Indian inflation, as are the more favourable base comparisons between late 2014 and the highly inflationary period of late 2013.

"Although Indian industrial production weakened in October, the trend for the economy continues to be stronger; 2014 is on track to be the best year for Indian electricity output growth since 1989.

"Looking to 2015, India should be a big winner from the global decline in energy prices, which will support consumer spending power, dampen inflation, and provide the ReserveBank of India with room to loosen monetary policy.

"Indian real GDP growth should accelerate above 6.0 percent in 2015."

ANUBHUTI SAHAY, ECONOMIST, STANDARD CHARTERED BANK, MUMBAI

"The IIP (industrial output) print was much worse than expected, and we last saw such bad prints back in October 2011.

"Some of the negative impact is likely to fade from next month onwards. However muted activity in the industrial sector is unlikely to provide a big push. We expect a rate cut in February 2015."

SHIVOM CHAKRABARTI, SENIOR ECONOMIST, HDFC BANK, NEW DELHI

"The IIP (industrial output) was shocking, I think there's probably a one-off factor. Overall, it does highlight the fact that growth is still weak and inflation pressures are falling.

"It does put more pressure on the RBI to cut rates but I think given guidance RBI has provided, it would be prudent for it to wait at least until February and at least until the budget to take a decision."

(Reporting by Neha Dasgupta and Dipika Lalwani; Editing by Rafael Nam)