Retail inflation Data
In March, retail inflation decreased to its lowest point in 10 months at 4.85%, while the Index of Industrial Production (IIP) registered a growth of 5.7% in February.
Government officials have not yet released the official data, as it is awaiting approval from the election commission, Reuters reported, citing local financial news service Informist. However, Reuters was unable to independently confirm this information. India’s seven-phase national elections are scheduled to commence on April 19.
In the meantime, industrial production saw a notable increase, reaching a four-month high of 5.7% in February, compared to 4.2% in the previous month.
During his address, Governor Das remarked, “The elephant in the room was CPI inflation. The elephant has now gone out for a walk and appears to be returning to the forest.”
Das emphasized the declining trend in inflation, attributed to favorable base effects. However, he acknowledged the ongoing pressure from service prices, which has kept the main indicator elevated compared to the specified targets.
The headline inflation for January-February 2024 has decreased to 5.1 percent, down from the 5.7 percent recorded in December. However, the unpredictable fluctuations in food prices persist, adding to inflation uncertainties.
“Although headline inflation has decreased from its December peak, the persistent pressure from food prices is hindering the continuous disinflation process, posing challenges to target achievement,” stated Das.
