Stabilising core inflation shows easing price pressures in economy: RBI
The Indian central bank sees stabilising core inflation, which excludes food and fuel prices, as a sign of easing price pressures in the economy.
Vegetable prices eased in August and brought down retail inflation to 6.8%. This is likely to continue in September, the Reserve Bank of India said in its monthly bulletin.
"The correction is not complete, and more is expected to drive down retail inflation in its September reading," the central bank said.
It added the correction in prices has moved beyond the three key vegetables - tomato, potato and onion - and the outlook for cereal prices has brightened, "supported by active supply side interventions".
While headline inflation remained above the central bank's comfort band of 2%-6%, core inflation dropped b...