Indian annual inflation falls to 14-month low

Posted on November 15, 2016

India’s annual inflation rate fell to its lowest level since August 2015 last month, driven lower by falling food prices in Asia’s second largest economy.

Year on year consumer prices grew by 4.2 per cent in October, slipping from September’s 4.3 per cent and just higher than analysts’ forecast for a decline to 4.15 per cent, according to figures compiled by Bloomberg.

The numbers come after wholesale prices also fell in October to 3.39 per cent. Softening inflation could add to the chances of another interest rate cut from the Reserve Bank of India which has been on an easing cycle amid weak price pressures this year.

India’s current base rate stands at 6.25 per cent after being lowered by the country’s new central bank governor Urjit Patel last month.

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