India's consumer inflation slowed to a new low in May as food prices fell.
The benchmark consumer-price index rose 2.18% from a year earlier, slower than April's 2.99% increase, government data showed Monday. The reading is the lowest since the index was introduced in 2012.
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The data would confirm expectations that inflation is running well below the central bank's estimates, although the Reserve Bank of India may still not cut interest rates until there is greater certainty that the weak trend would sustain.
The RBI last week slashed its inflation forecasts, acknowledging that price pressures were weaker-than-anticipated, but declined to ease its 'neutral' policy stance amid concerns that inflation may rebound and move close to its 4% medium-term target by the end of the year.
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(END) Dow Jones Newswires
June 12, 2017 08:24 ET (12:24 GMT)