India holds lower inflation rate hopes for new year

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As India's government prepares to release financial figures for December, many economists in the country are hoping for a fall in the overall rate of inflation.

During 2011 general inflation topped 9%, and the impact that had on food prices in particular has made life uncomfortably expensive for many.

So with a slight easing in the rate of food price inflation, will living become slightly more affordable again, or will other factors get in the way?

Supriya Menon reports from Mumbai.

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