Retail inflation plunged to a 18-month low in December 2018 at 2.19 percent, mainly on account of decline in prices of kitchen essentials like vegetables, eggs and pulses.

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The inflation based on the Consumer Price Index (CPI) was 2.33 percent in November and in the year-ago period (December 2017), it was at 5.21 percent.

The previous low inflation was 1.46 percent in June 2017.

The overall food inflation showed a negative print of 2.51 percent in December against an uptick of (-) 2.61 per cent in November, according to the data released by the Ministry of Statistics and Programme Implementation.

The rate of price rise in vegetables, fruits and protein-rich eggs continued to decline. However, there was a marginal increase in prices of meat, fish, and pulses.

Fuel and light inflation was 4.54 percent in December, down from 7.39 percent in November on back of reduction in prices of petrol and diesel.

CPI is widely used as a macroeconomic indicator of inflation, as a tool by governments and central banks for inflation targeting and for monitoring price stability, and as deflators in the national accounts.

Earlier in the day, government said wholesale price index (WPI) fell to 3.80 percent in December 2018 as against 4.64 percent in November 2018, helped by a smaller increase in food and fuel prices.

First Published:Jan 14, 2019 5:31 PM IST