Inflation is on a policy-guided path and RBI's Monetary Policy Committee (MPC) has, in its December meeting, lowered the pace of repo rate hike to 35 basis points (bps) from 50 bps of previous meetings. Among sub-groups, prices of vegetables, pulses and edible oils softened, while cereals, meat and dairy kept up the pressure on the price line. Fuel inflation has remained stable at elevated levels. Core inflation is persistent although headline inflation is dipping as the base effect turns adverse.