India’s Inflation Eases More Than Expected as Cash Ban Bites
- Consumer prices rise 3.63% in Nov. compared with Oct.’s 4.2%
- Vegetable prices contribute to fall in inflation rate
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India’s inflation grew at its slowest pace in two years as Prime Minister Narendra Modi’s move to scrap high-value currency notes dented demand.
Signs of a prolonged slowdown in inflation, excluding food and fuel, could push the central bank to add to six benchmark rate reductions since the start of 2015. Governor Urjit Patel last week left the rate unchanged citing risks to the target while retaining an "accommodative" stance. Data points due in the coming weeks include the U.S. monetary policy review -- where the Federal Reserve is expected to raise rates -- and India’s growth estimate for the year through March.