CPI inflation scaled an over 5-year peak of 7.35% in December, as food inflation spiked to 14.12%, the highest since November 2013, aided by an unfavourable base.
Inflation in vegetables jumped to as much as 60.5%.
The inflation surge could spoil chances of a repo rate cut in February, even as economic growth is estimated to hit an 11-year low of 5% in FY20. Adding to policy-makers’ woes, the CPI outlook will continue to face significant upside risks from unfavourable base for food inflation, at least until March 2020.
Source: Financial Express
