Retail inflation fell to a nearly 3-year low of 3.41 % in December 2016, from 3.63 % in November. Inflation eased mainly on account of falling prices of vegetables and pulses. According to official data, overall food inflation fell to 1.37 per cent in December last year, from 2.11 % in November. Retail inflation in the vegetables category slipped to minus 14.59 per cent in December. Inflation in pulses and products fell to minus 1.57 %. Retail inflation in cereals and products stood at 5.25 per cent.