India’s Inflation at Three-Month Low Gives RBI Some Respite

  • Consumer price index falls to 5.1% from 5.7% in December
  • Food inflation eases, core inflation moderates further

Food stalls at a market in Silhawad, Madhya Pradesh, India.

Photographer: Kanishka Sonthalia/Bloomberg
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India’s inflation eased to a three-month low in January as food prices moderated, providing some relief to rate-setters nervous about price shocks spilling over to other segments of the economy.

The consumer price index rose 5.10% last month from a year earlier, statistics ministry data showed Monday. That’s almost in line with the 5.0% median estimate in a Bloomberg survey of economists and compares with a 5.69% print in December.