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ET Explains: Not all may be bad about India's rising inflation


Once the vegetable prices cool down, the headline inflation figure will fall back within RBI's comfort zone.

Retail inflation climbed to a six-year high of 7.35 per cent breaching the Reserve Bank of India's upper band of 6 per cent for the first time since the Monetary Policy Committee was created. The wholesale inflation also crept up for the month of December.

The sharp spike in India's retail inflation came on the back of rise in vegetable prices in general and onion prices in particular. Onion prices have risen by 400 per cent since March, food ...


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