CRISIL sees gradual inflation pickup as food base effect fades

New Delhi, Jan. 12 -- CRISIL said India's December inflation data point to the beginning of a gradual rise in price pressures, even as headline inflation remains well below the Reserve Bank of India's target band.

The Consumer Price Index (CPI) inflation rose to 1.33 per cent in December, up from 0.7 per cent in November, marking the second consecutive quarter in which inflation undershot the RBI's 2-6 per cent target range.

Reacting to the data, Dipti Deshpande, Principal Economist at CRISIL, said, "The uptick in inflation was driven by food prices as the favourable base effect gradually waned. Food inflation rose to -2.7 per cent in December from -3.9 per cent in November, with prices of meat, fish and eggs firming up, while deflation i...