Retail inflation (CPI) came down to 3.41 % – its three year low in December 2016 according to the latest data from Ministry of Statistics and Programme Implementation. The inflation rate was 3.63% during November.
The inflation rate is at its lowest level since January 2014. During the last year, on the same month inflation rate was 5.61%.
The inflation data was curiously watched by economists and policy makers and several of them predicted a fall in inflation in the background of reduced consumption impact from cash constraints.
Downward pressure on prices was mostly induced by vegetables and pulses. The consumer food prices fell to 1.37% compared to 2.03% in the previous month.
In another statistic, the IIP rate registered an impressive 5.7% in November. all three sectors – Mining, Manufacturing and Electricity registered significant positive trends during the month.