India Inflation Eases To 15-Month Low; Industrial Production Growth Improves

RTTNews | 821 days ago
India Inflation Eases To 15-Month Low; Industrial Production Growth Improves

(RTTNews) - India's consumer price inflation eased more-than-expected in March to its lowest level in fifteen months amid a slowdown in food prices to be back within the Reserve Bank Of India's target range, while industrial production growth improved slightly in February, data from the National Statistical Office showed on Wednesday.

The consumer price index climbed 5.66 percent year-over-year in March, which was slower than the 6.44 percent rise in February. Economists had forecast the rate to drop to 5.80 percent.

In the same period last year, inflation was 6.95 percent.

Inflation returned within RBI's tolerance band of 2-6 percent for the first time since December.

Nonetheless, the inflation rate was above the central bank's medium-term target of 4.0 percent.

The RBI unexpectedly left its key interest rate unchanged this month after raising it aggressively in the past several policy sessions.

RBI Governor Shaktikanta Das said overall inflation is above target and, given its current level, the present policy rate can still be regarded as accommodative.

The central bank downgraded its inflation outlook to 5.2 percent from 5.3 percent for the financial year 2023-24.

Food price inflation moderated to 4.79 percent in March from 5.95 percent in the prior month, largely led by an 8.51 percent plunge in vegetable prices.

Prices for clothing and footwear rose 8.18 percent annually in March, and those for fuel and light grew 8.91 percent.

On a monthly basis, consumer prices moved up 0.23 percent in March, and food prices showed a similar kind of increase of 0.29 percent.

Separate official data showed that industrial production expanded 5.6 percent year-over-year in February, slightly above the revised 5.5 percent growth seen in January. Economists had forecast 5.1 percent growth.

Among the three main sectors, electricity production advanced the most, by 8.2 percent. This was followed by a 5.3 percent increase in manufacturing production. Mining output also logged a positive growth of 4.6 percent.

In the April to February period, total industrial production was 5.5 percent higher compared to the same period a year ago.

read more
India Slashes Policy Rates By Bigger Than Expected 50 Bps; Shifts Stance To Neutral

India Slashes Policy Rates By Bigger Than Expected 50 Bps; Shifts Stance To Neutral

The Reserve Bank of India lowered its interest rates by a sharper-than-expected 50 basis points on Friday, marking the third consecutive reduction as policymakers focused on propelling growth amid the softening inflation, but the central bank shifted its monetary policy stance to neutral signaling a pause ahead. The MPC decided to cut the policy repo rate by 50 basis points to 5.50 percent.
RTTNews | 35 days ago
RBI Shifts Stance To Accommodative As Tariffs Loom

RBI Shifts Stance To Accommodative As Tariffs Loom

The Reserve Bank of India cut its key policy rates for the second straight meeting and also shifted its monetary policy stance to accommodative as trade tariffs pose risks to the outlook for both inflation and growth. At the first policy meeting of the financial year, the Monetary Policy Committee, led by RBI Governor Sanjay Malhotra, unanimously decided to cut the policy repo rate.
RTTNews | 92 days ago
India Inflation Weakest In 7 Months

India Inflation Weakest In 7 Months

India's consumer price inflation slowed to a seven-month low in February as food price growth hit the lowest in nearly two years, raising expectations of interest rate cuts over coming months. Consumer price inflation eased to 3.61 percent in February from 4.26 percent in January, official data revealed on Wednesday. This was the lowest since July 2024.
RTTNews | 121 days ago
India Inflation Weakens More Than Forecast To Lowest Level In 5 Months

India Inflation Weakens More Than Forecast To Lowest Level In 5 Months

India's consumer price inflation slowed more than expected to a five-month low in January reinforcing expectations that the Reserve Bank of India will reduce interest rates further. The consumer price index registered an increase of 4.31 percent on a yearly basis in January, weaker than the 5.22 percent rise logged in December, official data revealed on Wednesday.
RTTNews | 149 days ago
India Cuts Interest Rates For First Time Since 2020

India Cuts Interest Rates For First Time Since 2020

The Reserve Bank of India reduced its key interest rates for the first time in nearly five years as the newly appointed governor prioritized providing impetus to economic growth than containing inflation and, underlined that the bank does not target any exchange rate level for the rupee. The 6-member RBI Monetary Policy Committee, headed by Governor Sanjay Malhotra, decided to lower the policy
RTTNews | 154 days ago
Indian Central Bank Announces Measures To Boost Banking System Liquidity

Indian Central Bank Announces Measures To Boost Banking System Liquidity

The Reserve Bank of India on Monday announced several measures that are set to inject over INR 1 trillion liquidity into the banking system, a move many observers interpreted as paving the way for policy easing next week. The central bank said it will purchase government securities worth INR 600 billion through open market operations purchase auctions.
RTTNews | 164 days ago
Indian Economy To Expand 6.4% In FY25, Weakest In 4 Years: Govt Estimate

Indian Economy To Expand 6.4% In FY25, Weakest In 4 Years: Govt Estimate

India's economy is set to grow at the slowest pace in 4 years in the fiscal year 2024-25, initial estimates from the government showed on Tuesday. Gross domestic product is expected to grow 6.4 percent in the financial year ending March 31 following an 8.2 percent expansion in the previous fiscal.
RTTNews | 184 days ago
India Private Sector Growth Strongest In 4 Months

India Private Sector Growth Strongest In 4 Months

India's private sector grew the most in four months in December as there were quicker increases in output at both manufacturers and service providers, flash data compiled by S&P Global showed on Monday. The HSBC composite output index registered 60.7 in December, up from 58.6 in November. A score above 50.0 indicates expansion.
RTTNews | 207 days ago