Retail inflation over 5.2%, dashing hopes of RBI rate cut

Continuing rise in food and fuel prices pushed India’s annual retail inflation rate over the five per cent-mark in December, official data showed on Friday, putting paid to hopes of an interest rate cut by the RBI in the near future.

As per the data released by the Central Statistics Office inflation for the food basket increased to 4.96 per cent in December from 4.42 per cent in the preceding month.