Food inflation is relevant in terms of the impact on inflationary expectations, but has no direct link to monetary policy, Reserve Bank of India Deputy Governor Subir Gokarn said.
India's food price index dropped 2.90% in the year to December 31, compared with 3.36% in the previous week, data released Thursday showed.
Headline inflation has stayed stubbornly above 9% for a year, but with the annual food price index declining for two consecutive weeks in December overall inflation is expected to ease.