India's overall inflation increases marginally to 0.11 in December from 66-month low of 0

India's overall inflation, measured by the Wholesale Price Index (WPI), increase marginally to 0.11% December from 66-month low of 0% in previous month of November. Food inflation increased to 5.2% in December compared to just 0.63% in November which pushed the overall inflation number higher.

At the same time, the rate of inflation for fuel dropped further to (-) 7.82% in December from (-) 4.91% in November due to continuous drop in crude oil price. Also the rate of inflation for manufactured products dropped to 1.57% in December from 2.04% in November.

With 0.11% wholesale inflation and low retail inflation numbers, the RBI is expected to cut rates during its next monetary policy review meeting to boost growth. RBI Governor Raghuram Rajan has kept the interest rate unchanged during its last monetary policy review meeting held earlier tis year as he believed only interest rate cut won-t lift economy.