Retail inflation eases to 9.87 percent in December

India's retail inflation declined to 9.87 percent in December, the lowest in three months, on the back of moderation in vegetable price rise, government data showed Monday.

Retail inflation based on the Consumer Price Index (CPI) was 11.16 percent in November. 
Inflation for food and beverages eased to 12.76 percent in December from 14.72 percent recorded in the previous month, according to data released by the Central Statistics Office (CSO).  

Vegetables prices grew at a slower rate of 38.76 percent in December year-on-year as compared to 61.6 percent jump in the previous month. 

Cereals became costlier by 12.14 percent, egg, fish and meat prices jumped by 12.64 percent while milk price soared by 9.87 percent during the month under review. 

Sugar was the only product considered in the category that became cheaper. Sugar price in the retail declined by 5.61 percent in December year-on-year. 

Retail inflation eased for both rural and urban areas. For rural areas retail inflation declined to 10.49 percent in December from 11.66 percent in the previous month. 

For urban areas retail inflation declined to 9.11 percent in December from 10.53 percent in the previous month. The overall inflation is the average of rural and urban.