Retail inflation declined marginally to 2.05 per cent in January over the previous month on a continued decline in food prices, including vegetables and eggs, said government data Tuesday.

Retail inflation based on the Consumer Price Index (CPI) for December 2018 has also been revised downward to 2.11 per cent from the earlier estimate of 2.19 per cent. The inflation was 5.07 per cent in January 2018.

The data released by the Central Statistics Office further said the inflation in the 'fuel and light' category also fell to 2.2 per cent in January this year from 4.54 per cent in December 2018.

The Reserve Bank of India, which reduced the key lending rate by 0.25 per cent last week, mainly factors in CPI-based inflation while arriving at its bi-monthly monetary policy.

The central bank has revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.

Retail inflation declined marginally to 2.05 per cent in January over the previous month on a continued decline in food prices, including vegetables and eggs, said government data Tuesday.

Retail inflation declined marginally to 2.05 per cent in January over the previous month on a continued decline in food prices, including vegetables and eggs, said government data Tuesday. Retail inflation based on the Consumer Price Index (CPI) for December 2018 has also been revised downward to 2.11 per cent from the earlier estimate of 2.19 per cent. The inflation was 5.07 per cent in January 2018. The data released by the Central Statistics Office further said the inflation in the 'fuel and light' category also fell to 2.2 per cent in January this year from 4.54 per cent in December 2018. The Reserve Bank of India, which reduced the key lending rate by 0.25 per cent last week, mainly factors in CPI-based inflation while arriving at its bi-monthly monetary policy. The central bank has revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.

Retail inflation drops to 19-month low in January on falling food prices

<a href="http://www.wionews.com/business-economy/fpis-turn-net-sellers-in-january-withdraw-rs-3600-cr-in-just-9-sessions-189987">Foreign investors</a> have pulled out more than Rs 4,000 crore from the Indian capital markets so far in January, highlighting their cautious stance towards the country.

This comes following a collective net inflow of over Rs 17,000 crore in the capital markets — both equity and debt — by Foreign Portfolio Investors (FPIs) during November and December.

Prior to that, they had pulled out a massive Rs 38,905 crore in October.

According to data available with the depositories, FPIs withdrew a net amount of Rs 3,987 crore from equities and a net sum of Rs 53 crore from the debt market, taking the total outflow to Rs 4,040 crore during January 1-18.

Market experts believe that FPIs are continuing with their 'wait and watch' approach towards India.

Going ahead, the focus would be on the budget, progress on the economic growth front and general elections, they added.

Other factors such as movement in crude prices and currency as well as <a href="http://www.wionews.com/world/no-breakthrough-in-us-china-trade-talks-trump-adviser-191392">US-China trade relations</a> will also play a role in FPI flows, they added.

Harsh Jain, COO at Groww, an online MF investment platform, said 2019 is likely to see a lot of volatility because of the rate hikes and dollar instability, but the Indian markets may be able to weather the storm.

"India offers better investment opportunities due to consistent growth, supportive global factors and attract valuations. We should expect positive inflow in coming months," he added.&nbsp;

Market experts believe that FPIs are continuing with their 'wait and watch' approach towards India.

Foreign investors have pulled out more than Rs 4,000 crore from the Indian capital markets so far in January, highlighting their cautious stance towards the country. This comes following a collective net inflow of over Rs 17,000 crore in the capital markets — both equity and debt — by Foreign Portfolio Investors (FPIs) during November and December. Prior to that, they had pulled out a massive Rs 38,905 crore in October. According to data available with the depositories, FPIs withdrew a net amount of Rs 3,987 crore from equities and a net sum of Rs 53 crore from the debt market, taking the total outflow to Rs 4,040 crore during January 1-18. Market experts believe that FPIs are continuing with their 'wait and watch' approach towards India. Going ahead, the focus would be on the budget, progress on the economic growth front and general elections, they added. Other factors such as movement in crude prices and currency as well as US-China trade relations will also play a role in FPI flows, they added. Harsh Jain, COO at Groww, an online MF investment platform, said 2019 is likely to see a lot of volatility because of the rate hikes and dollar instability, but the Indian markets may be able to weather the storm. "India offers better investment opportunities due to consistent growth, supportive global factors and attract valuations. We should expect positive inflow in coming months," he added.

FPI outflow crosses Rs 4,000 crore in January so far

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Retail inflation drops to 19-month low in January on falling food prices

FPI outflow crosses Rs 4,000 crore in January so far