Consumer price inflation at 8 pct if food removed: RBI chief

MUMBAI Tue Jan 29, 2013 3:40pm IST

Related Topics

MUMBAI (Reuters) - India's consumer price inflation remains high but if the impact of food prices is removed it is at 8 percent, the Reserve Bank of India Governor Duvvuri Subbarao said on Tuesday.

India's annual consumer price inflation accelerated to 10.56 percent in December from the previous month. Food items contribute 49.71 percent to the index.

Analysts have been worried about the central bank's ability to cut rates given high consumer price inflation even as wholesale price based inflation eased to a three-year low.

Earlier in the day, the RBI cut the key repo rate for the first time in nine months by 25 basis points, and also lowered bank's cash reserve ratio to 4 percent from 4.25 percent. (Reporting by Neha Dasgupta)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Paring Debt

Paring Debt

Jaiprakash to sell hydro plants to Reliance Power  Full Article 

Nifty Falls

Nifty Falls

The broader index hits lowest in nearly a week on profit taking  Full Article 

Mideast Conflict

Mideast Conflict

U.N. Security Council calls for humanitarian ceasefire in Gaza  Full Article 

Market Eye

Market Eye

Foreign investors prefer Indian cyclicals, utilities - Macquarie  Full Article 

Debt Investment

Debt Investment

India's FII debt limit hike credit-positive, says Moody's  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage