Food inflation turns negative
Food inflation turned negative in late December for the first time in many years as prices of vegetables like onion and potato declined, a development that may prompt the Reserve Bank to go for rate cuts at its next monetary policy review later this month.
``Sustained food inflation is credit negative because it exacerbates India's macroeconomic challenges of slowing growth, high inflation and large fiscal and current account deficits,'' Moody's Investors Service said in credit outlook report.