INFLATION COOLS FURTHER, TO SPUR FRESH RATE CUT

NEW DELHI: India’s retail inflation slowed further to a new 19month low in January while factory output, dragged down by a negative base effect, remained subdued in December, opening more space for the central bank to cut interest rates. Data released by the Central Statistics Office showed consumer price index or Cpi-based inflation stood at

2.05% in January against the 18-month low of 2.11% in December, while factory output recovered to 2.4% in December from 0.3% in November. The Monetary Policy Committee of the RBI on 7 February changed its stance from calibrated tightening to neutral and cut the policy rate by 25 basis points on the back of benign headline retail inflation and slowing global growth.