India's December retail inflation is expected to have eased to its lowest since June 2017 as food costs fell and fuel prices rose at a slower pace, according to a survey by Reuters.
Inflation likely cooled to 2.20 per cent in December - close to the lower end of the Reserve Bank of India's medium-term target range of 2.0-6.0 per cent. In November, inflation was at 2.33 per cent.
If the latest consensus is realised it will mark the fifth month in a row consumer price inflation has held below the mid-point of the RBI's target band. Forecasts ranged between 1.80 per cent and 3.00 per cent, and suggested price pressures are easing off from earlier in 2018.
Cooling inflation expectations have also been driven by lower oil prices and a rupee currency that has managed to stabilise after a steep sell-off. Crude oil prices are down over 30 per cent since Oct 3, when it hit the highest in almost four years, and the rupee has bounced nearly 6 per cent after touching a lifetime low of 74.48 on Oct 11.