Headline inflation fell to a two-year low of 7.47 per cent in December 2011 on cheaper food items, a factor which may prompt the Reserve Bank to cut
policy rates in the upcoming review. Headline inflation, as measured by Wholesale Price Index (WPI), had stood at 9.11 per cent in November. It was 9.45 per cent in the same month of 2010.
The latest numbers are the lowest since December 2009 when headline inflation was at 7.15 per cent.