Mumbai Sensex closes higher as Indian inflation slows

<p>Mumbai’s Sensitive Index closed higher today as inflation slowed once again.</p>

The Mumbai Sensex Index closed higher this morning (December 14th) on news India's inflation rate has slowed.

Official figures from the Reserve Bank of India's wholesale price index – which is the nation's main gauge of inflation – increased by 7.24 per cent in November compared to a year earlier.

This is next to a reading of 7.4 per cent for October and 7.8 per cent the month before that.

Inflation in the subcontinental country has declined as a result of an easing in manufacturing and fuel prices.

The central bank has been under pressure to lower the cost of borrowing in order to help revive India's sluggish pace of growth.

India's Reserve Bank has not cut interest rates since April of this year because inflation has remained above seven per cent.

At close of play in Mumbai this morning, the Sensitive Index rose by 0.4 per cent – or 87.9 points – to an index value of 19317.2 points.

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