India's consumer price inflation falls to 4.59% as food price ease
- Consumer price inflation based on the consumer price index declined to 4.59 per cent in December 2020 from 6.93 per cent in November, falling within the tolerance limit set by the Reserve Bank of India of 4% +/- 2%, as prices of fruits and vegetables declined with winter crop arrivals.
- The decline in consumer prices can also be attributed to easing of supply constraints following the lifting of lockdown restrictions.
- Data released by the CSO showed that consumer price inflation that has been steadily rising after hitting 3.15 per cent in July last year has startrd decling with falling food prices and easing of supply bottlenecks.
- Consumer price inflation for rural areas stood at 4.07 per cent in December 2020 down from 7.20 per cent in November.
- Consumer price inflation for urban areas declined to 5.19 per cent in December 2020 from 6.73 per cent in November.
- Food price inflation for rural areas stood at 3.11 per cent in December 2020 against 9.64 per cent in November.Food price inflation for urban areas stood at 4.08 per cent in December 2020 against 9.23 per cent in November. Source: https://www.domain-b.com
