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

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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