Higher input prices and disruptions to the rural economy have resulted in price pressures and inflation is back to haunt us, a rating agency said in its research report on Wednesday.
Retail inflation for farm workers and rural labourers in April eased marginally to 2.66 per cent and 2.94 per cent, respectively, mainly due to lower prices of certain food items
Economists say policy rate reduction unlikely
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Inflation in the food basket was 2.02% in April, down from 4.87% in the preceding month; industrial production shrinks 8.6% in FY21 compared to 0.8% contraction in FY20
Consumer price inflation was predicted to cool to 4.20 per cent in April, just above the RBI's 4 per cent mid-point target and down from March's four-month high of 5.52 per cent
The development may prevent RBI's monetary policy committee from cutting policy rates unless growth really takes a hit due to regional lockdowns in 2021-22, experts say
The manufacturing sector output contraced by 3.7 per cent in February, while the mining output declined by 5.5 per cent. Meanwhile, the power generation grew by 0.1 per cent
The April 5-8 poll of more than 50 economists showed retail inflation rose to 5.40% in March from a year earlier as opposed to 5.03% in February. Forecasts ranged from 4.60% to 6.11%
Retail inflation for farm workers and rural labourers rose to 2.67 per cent and 2.76 per cent in February against 2.17 per cent and 2.35 per cent respectively in January, 2021
India's retail inflation, according to data released this Friday, surged to a three-month high of 5.03 per cent in February, as against 4.06 per cent in the previous month
Food inflation rose to 3.87 per cent from 3.11 per cent over this period.
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Retail food inflation rate fell to 1.89 per cent in January from 3.41 per cent in December
However, some want core to be monitored as well, MPC should be given leeway to choose target
Retail inflation for industrial workers eased to 3.15 per cent in January against 7.49 per cent in the same month last year, mainly due to lower prices of certain food items
India's retail inflation, which had touched double-digits during the previous Congress party-led government, has gradually fallen, helping Modi to win a second term in 2019
The easing was mainly due to lower prices of certain food items
Experts say MPC may continue with accommodative stance in next nine months
India's retail inflation slipped marginally in January but was within the Reserve Bank of India's target range for a second month as vegetable prices declined further, a poll predicted