Aided by a drop in food prices, India’s Consumer Price Index (CPI)-based inflation fell to 8.1 percent in February, the second-lowest since the index was launched in 2012, showed data released on Wednesday. Only for January 2012 did CPI-based inflation stand at a lower level (7.65 percent).
In February 2013, inflation stood at 10.29 percent; in January this year, it was 8.79 percent.
Economists cautioned in the coming months, inflation would remain close to the level seen in February, and this was unlikely to allow the Reserve Bank of India to cut the policy rate at its meeting next month. Also, it is expected the El Niño phenomenon might disrupt the monsoon this year.
(Source: Business Standard )