Consumer Price Index inflation or retail inflation cooled to a five-year low of 3.17% in January 2017 compared to 3.41% in December as the impact of demonetization played out in the economy. While the CPI inflation figure was lower than the 3.22% that Reuters estimated by polling economists, experts say that retail inflation has now bottomed out and will only go higher hereon.
Retail inflation cooled in January led by lower food prices for a second straight month. Food inflation was at 0.53% in January compared to a revised 1.37% in December. Inflation in vegetables was negative at (-)15.62% from (-)14.59% a month ago and for pulses and products, prices deflated by (-)6.62%, according to a PTI report.