The decision to lower GST rates on over 200 items could help pull down retail inflation by 20 basis points from the current levels driven by lower food and beverage prices, says a report.
Retail or CPI inflation rose to a 7-month high of 3.58 per cent in October, driven up by costlier food items, particularly vegetables.
According to global financial services major Nomura, recent decision by the central government to lower tax rates for 213 items including 178 items of daily consumer use is likely to lower CPI inflation by about 20 basis points (0.2 per cent). -- PTIAlso read:
Onion, veggies push inflation to six-month high