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

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

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