India's annual retail inflation in December slowed to 5.22% from 5.48% in the previous month, government data released on Monday showed.

India's annual inflation declined for a second straight month year on year, coming in just below expectations at 5.22% in December. The cooldown in price growth boosts the case for prospective interest rate cuts.

India's retail inflation eased to a four-month low of 5.22 per cent in December, down from 5.48 per cent in November, according to data released on January 14. The decline in inflation was largely driven by a moderation in food prices,