India's inflation slowing to 7.24% in November is positive news as it shows slowing demand pressures in the economy even though the headline number is still above the central bank's comfort level, says Rupa Rege Nitsure, chief economist with state-run Bank of Baroda. "The number shows that despite the festival season, the pricing power of the manufacturing companies didn't go up. The data has substantially raised the chances of a policy rate cut in January," she says. The bank doesn't expect the central bank to cut rates at its mid-quarter policy review on Tuesday. India's November month inflation came in at 7.24% from a year earlier, slower than October's reading of 7.45%, government data shows. The reading is also lower than the median 7.60% forecast in a Dow Jones Newswires poll of 18 economists. (nupur.acharya@dowjones.com)
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