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India inflation probably eased in Dec, thanks to lower food prices

Published on Jan 13, 2014 6:48 AM

NEW DELHI (REUTERS) - India's stubbornly high inflation finally appears to be slowing down following a cooling in vegetable prices, bringing some relief to the ruling Congress party which is struggling to win back voters ahead of a national election due by May.

Easing inflation will also make life easier for a central bank that has an arduous task of pulling the economy out of a stagflation-like situation. Economic growth has been stuck below 5 per cent for the past four quarters but prices have risen at a fast clip.

According to a Reuters poll, consumer inflation , probably eased to a three-month low of 9.92 per cent in December, from 11.24 per cent the previous month - the highest reading on record.

Wholesale prices, India's benchmark inflation, also likely edged down last month to 7.00 per cent from a 14-month high of 7.52 per cent in November, the Reuters poll showed.

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