India's inflation eased in December as vegetable prices fell from the previous month.
The fall in the inflation rate to 6.2 per cent could persuade the central bank to hold off from an interest rate hike this month, though the inflation is still far above its target of 4-5 per cent.
The inflation rate was down from 7.5 per cent in November.
Prices for vegetables dropped by 29.7 per cent in December from November, led by onions and potatoes that had soared in cost in previous months. Still, vegetables overall cost 57.3 per cent more in December than they did a year earlier.
Food inflation in India is partially driven by an inefficient distribution system that results in some 30 per cent of produce spoiling before reaching markets.
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