CPI inflation falls to 17-month low at 2.33% over food price deflation

Falling international crude prices had its impact on the inflation rate

The consumer price index- (CPI-) based inflation rate fell to a 17-month low of 2.33 per cent in November against 3.38 per cent in October as food prices continued to fall for the second month in a row. If the trend persists, the monetary policy committee (MPC) may change its stance from "calibrated tightening" to "neutral", say economists. 

Food rates declined at a faster pace of 2.61 per cent in November, compared to 0.86 per cent in October, an official release on Wednesday showed. 

About 45 per cent of the CPI is about food inflation and hence sharp decline in its prices