Meanwhile, the country's industrial output in December rose 2.4 percent from a year earlier, slightly higher than forecast, government data showed on Tuesday.
The Consumer Price Index inflation rate for rural areas stood at 1.29%, while it was 1.50% in December 2018.
Manufacturing output, which accounts for 77.63 per cent of the index, grew at 2.7 per cent in December as against 8.7 per cent a year ago but was higher than contraction of 0.6 per cent in the previous month.
Those differences may disappear as slowing economic activity is set to drag core inflation down and also as the pass through impact from food and fuel prices fades. Cumulatively, for April-December 2018-19, industrial output grew at 4.6 per cent against 3.7 per cent in the same period of the previous financial year. Growth in the mining sector declined 1%.
Economists in a Reuters poll predicted retail inflation would edge up to 2.48 percent in January from the downward revised December figure of 2.11 percent. The RBI, which in its sixth bi-monthly monetary policy statement on February 7 cut policy rate by 25 basis points, had revised down its inflation projections citing low food inflation due to excess supply conditions domestically as well as internationally and larger than anticipated moderation in fuel inflation.
The retail inflation number was much lower than the market expectations, said Tushar Arora, a senior economist at HDFC Bank.
Consumer inflation had stood at 1.46 per cent in June 2017.
About a third of the fall in food prices is structural and could persist for an extended period of time, said Prachi Mishra, chief India economist at Goldman Sachs in an interview with BloombergQuint.
Shaktikanta Das, the RBI's new governor, voted for a cut despite only weeks earlier acknowledging the challenges posed by the divergent paths taken by core and food inflation. The central bank also changed its policy stance to "neutral" from "calibrated tightening", a shift that allows it to act either way on the key rates.
Related News:
-
Apple to announce a new subscription-focused service on March 25th
AirPower is based on the Qi charging standard, which powers wireless chargers for Android and iOS smartphones alike. If you're waiting for the new AirPods, they won't be arriving until the fall, it's suggested.Solskjaer confirms duo out of Champions League tie
It is not over yet as there is the second leg at home, which we need to focus on. "Congratulations to my team, we were excellent", the German said.Trump could let March 1 deadline for trade deal slide
During an interview Monday, White House Counselor Kellyanne Conway said the president wants to meet with President Xi very soon. Vietnam, the Philippines, Brunei, Malaysia, Indonesia and Taiwan all have competing claims for territory in the region. -
Malaysia to settle its problem with North Korea - Dr Mahathir
Secretary of State Mike Pompeo said during a visit to Slovakia on Tuesday he hoped for "substantial progress" in Hanoi . Kim could also meet with Vietnam's President Nguyễn Phú Trọng before sitting down with Trump.Taylor Swift Spotted at 2019 BAFTAs After-Party With Joe Alwyn
Alwyn, 27, walked the red carpet alone but linked up with the 29-year-old singer at an afterparty, witnesses on social media said. Although she is very private when it comes to her romance, Swift was not holding back her happiness for Alwyn last night.McConnell says Senate will vote on Democrats’ ‘Green New Deal’
However, it's received far less support and more pause from moderate Democrats while receiving criticism from Republicans. He said Democrats could just simply "present" when the legislation comes before the chamber. -
Nurse killed husband to marry inmate
A Missouri woman has been accused of poisoning and killing her husband so she could marry her inmate lover. Officials determined that Amy poisoned Joshua with antifreeze and put him on the bed, according to KMIZ.Rapper 21 Savage Released From ICE Custody
United States Immigration and Customs Enforcement detained the rapper on claims that he was living in America on an expired visa. The attorney maintained the government knew about his immigration status as he had a 2017 U-visa application pending approval.Holders Czech Republic exit Fed Cup in first round
Pliskova got off to a hot start in the second set, breaking Halep at love for a 3-1 lead after the Romanian's backhand went awry. France and Belarus reached the Fed Cup semifinals after sweeping their first-round series on Sunday. -
Nintendo Direct To Air Tomorrow, Wednesday 13th February
The Direct will apparently run 35 minutes long, and focus on Switch titles, particularly Fire Emblem: Three Houses . Reports about a new Direct airing this week surfaced last weekend following teases from a Nintendo Insider.Anthem live-action short film Conviction by Neill Blomkamp announced
The publisher has partnered with Hollywood director Neill Blomkamp to produce a short film set in the game's world. Are you interested to watch Conviction when it arrives in a couple of days?'Arrow', 'The Flash' & Other Warner Bros. CW Shows Likely To Leave Netflix
But no, that's not exactly right. "It's certainly something we're willing to do", Reilly continued. Everyone in this space, it seems, is going to be gunning for Netflix, if they aren't already.