Rising Food Prices Drive Up December Inflation, Could Delay RBI Rate Cuts
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December inflation data shows an increase in food prices, especially vegetables, pulses, and spices, driving up overall inflation. This may delay RBI interest rate cuts.
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Inflation varies across India, with Odisha having the highest at 8.7% and Delhi the lowest at 2.9%.
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Core inflation minus food and fuel continues to trend down.
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Full year inflation likely to be 5.5% with March 2024 rate expected at 5%.
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Higher inflation adds uncertainty ahead of upcoming budget presentation and in an election year.