Inflation slides to 2-yr low of 7.47%, factory goods rise

India’s headline inflation slowed to a two-year low of 7.47% in December, thanks to a sharp drop in food prices over the recent weeks but the stickiness — rather, a marginal sequential rise — in the prices of manufactured products somewhat punctured hopes that inflation would moderate to 6-7% by March. Besides, a likely weakening of the rupee, consequent to the euro’s recent fall, could partly negate the perceived benefit of a high base on inflation numbers.

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