December was the second straight month when inflation remained below the Reserve Bank of India's tolerance band of 6 per cent.
India's retail inflation as measured by the consumer price index (CPI) eased to 5.72 per cent in December compared with 5.88 per cent in the previous month. December was the second straight month when inflation remained below the Reserve Bank of India's tolerance band of 6 per cent.
Analysts in a Reuters poll had predicted annual inflation of 5.90 per cent in December.
Inflation has been on a declining trend for last two months on the back of softening food prices. Food inflation eased to 4.19 per cent from 4.67 per cent in the previous month.
Reserve Bank of India's Monetary Policy Committee takes into account retail inflation numbers for setting repo rates. The RBI has raised interest rates by 225 basis points, including a 35 basis points hike last month.
In seperate economic data, Indian factory output measured by the Index of Industrial Production (IIP) rose by 7.1 per cent in November 2022 after contracting in October, according to official data released.
The Index of Industrial Production (IIP) grew by 1 per cent in November 2021.
As per the IIP data released by the National Statistical Office (NSO), the manufacturing sector's output grew by 6.1 per cent in November 2022.
The mining output rose by 9.7 per cent and power generation increased by 12.7 per cent during the month under review.
(With agency inputs)