Retail inflation came down significantly in December landing within the Reserve Bank’s targeted band of 2-6 per cent, the government data showed on Tuesday.December annual retail inflation was at 4.59 per cent, lower than 6.93 per cent in November. December urban inflation was 5.19 per cent, lower than 6.73 per cent in November; December rural inflation was 4.07 per cent, lower than 7.20 per cent in November.MonthInflation (%)December4.59November6.93October7.61 A fall in inflation within the Central Bank’s mandated aim augurs well for the economy, even though the interest rates may not come down further, experts said.“This is the first time the inflation has come within the RBI’s 2-6 per cent target band. It’s a big comfort,” said Vivek Kumar, economist, QuantEco.Kumar doesn’t expect the RBI to cut rates at its next monetary policy meeting, saying a rate hike may only be possible early next year and that too presuming growth momentum normalizes in H2FY22. RBI’s stance, he added, is likely to remain accommodative in the next four quarters. The economist expects inflation to remain within 2-6 per cent levels through the rest of the fiscal as well as the next financial year 2021-22, however adding a surge in commodity prices remains… Read full this story
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