Indian Inflation Eases For Fourth Month

India's annual inflation slowed for the fourth consecutive month in January, owing mainly by falling food prices, data released by the Ministry of Commerce and Industry showed Tuesday.

The wholesale price index increased 6.55 percent on an annual basis in January, slower than the 7.47 percent growth seen in December. Economists were looking for an inflation rate of 6.7 percent. Inflation slowed for the fourth month in a row.

Food prices dropped 0.52 percent annually during the month, reversing the 0.74 percent increase seen in December. Prices of primary articles increased at a slower pace of 2.25 percent year-on-year in January than the previous month's 3.07 percent rise.

Prices of non-food items rose 0.55 percent annually, following December's 1.48 percent growth. Fuel and power prices climbed 14.21 percent on an annual basis, after advancing 14.91 percent in the previous month.

The Reserve Bank of India in January slashed the cash reserve requirements for banks by 50 basis points to ease tight monetary liquidity conditions. The central bank, however, kept its policy rate unchanged for the second time in a row amid persistent inflationary pressures.