In January, food disinflation, or a fall in food prices, persisted for the fourth consecutive month.
Industrial production jumped to 2.4 per cent in December, 2018 from 0.5 per cent in November, 2018 driven mainly by a sharp spike in manufacturing index which rose to 2.7 per cent vs -0.4 per cent month-on-month.
Separate official data showed growth in industrial production - determined by Index of Industrial Production (IIP) - picked up to 2.4 per cent in December. Economists had on an average expected inflation at 2.48 per cent in January, according to a poll of 30 economists surveyed by news agency Reuters before the last RBI policy meeting.More news: Prison Nurse Fatally Poisoned Husband to Marry Convicted Murderer
CPI is the main price gauge that the Reserve Bank of India (RBI) tracks.
Mumbai: India's headline and core inflation rates are set to converge in the coming months as the economy slows, increasing the chance of more interest rate cuts.
This is the sixth straight month where the inflation has remained below the RBI's medium term target of 4 per cent. India imports almost 80 percent of oil it consumes.
Core consumer inflation, which strips out food and fuel prices, was estimated at about 5.4 percent in January, slightly softer than a downward revised December figure of 5.6 percent, according to an estimate made by two analysts from inflation figures released on Tuesday.More news: Mitsubishi Outlander Sport rolls towards Geneva debut
The retail inflation number was much lower than the market expectations, said Tushar Arora, a senior economist at HDFC Bank. Growth in the mining sector declined 1%.
For now, headline inflation eased further as food prices extended their fall, albeit at a slower pace. Consumer non-durable goods growth was at 5.3 per cent in December compared with 16.8 per cent growth in the year-ago period.
This year, other major central banks have also changed to a dovish stance in the face of rising worries about global growth and the impact of the U.S.More news: Johnson triggers wreck, wins Clash at Daytona
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