Dec retail inflation at 5.72 vs 5.88 in Nov
Dec food price inflation at 4.19 vs 4.67 in Nov
Industrial output up 7.1 in Nov vs fall of 4 in Oct
Dec Core CPI at 6.1 vs 66.26 in Nov

NEW DELHI, Jan 12 Reuters India39;s annual retail inflation edged down from the previous month and remained within the central bank39;s comfort zone amid cooling food prices, while industrial output rose at the fastest pace since June, easing concerns for policymakers.

The inflation print for December was below the central bank39;s upper tolerance level of the 26 range for the second consecutive month.

Annual retail inflation rose 5.72 in December from 5.88 in the previous month, government data showed on Thursday. Analysts in a Reuters poll had predicted a December reading of 5.90.

India39;s industrial output rose 7.1 in November compared to a contraction of 4 in the previous month, exceeding Reuters39; forecast of 2.6.

Food price inflation, which accounts for nearly 40 of the consumer price index CPI basket, eased to 4.19 in December from 4.67 in November, aided by lower vegetable prices. However, prices of cereals and milk continued to rise.

We see another sub 6 CPI retail inflation print in January 2023, said Garima Kapoor economist at Elara Capital.

Excluding the volatile food and energy components, core inflation was estimated at 6.1, according to two economists, versus 6 and 6.26 in November.

But most economists still expect the Reserve bank of India to raise rates in its…