India's 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 annual retail inflation in December eased to 5.22% from 5.48% in the previous month as the rate of increase in food prices slowed, government data released on Monday showed.

India's wholesale inflation increased to 2.37% in December from 1.89% in November, driven by slower food price rises. Retail inflation eased to 5.22% from 5.48% in the same period. The RBI downgraded growth forecasts,