Inflation seen at 7.49 per cent: Poll

India's annual inflation rate is expected to have fallen sharply to a nine-month low in the first week of December after a cut in state-controlled domestic fuel prices.

The median forecast of 11 economists was for a 7.49% rise in the wholesale price index in the 12 months to Dec. 6, compared with 8.00% in the previous week.

If the forecast is realised, it would be the smallest annual rise since March 1, when the index rose 6.21%.

The government cut retail prices of petrol by 10 percent and diesel by about 6% with effect from Dec. 6.

There is some uncertainty over whether the fuel price cut would be factored in this week, but I think it would be. However, that should only have a 15 to 20 bps impact on the inflation number.

Inflation had surged into double digits in early June after an increase in state-set retail fuel prices, and peaked at 12.91percent on Aug. 2, the highest reading since annual numbers in the current data series became available in April 1995.

The central bank said recently that it expects inflation to be significantly lower than its March-end target of 7 percent.

The government has been releasing the data around noon on Thursdays recently, though it is officially scheduled for release at 6 p.m.

The wholesale price index is more closely watched than the consumer price index (CPI) because it includes more products and is also published weekly. The CPI is released monthly.