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Retail inflation may top forecast
Financial Express Mumbai
|April 09, 2024
Pulses prices rise inexorably, fruits vegetables, milk may turn costlier too
THE RESERVE BANK of India (RBI) would rather "ensure the descent of (consumer price inflation) to the target of 4%" and prolong the monetary pivot towards lowering rates.
The wait for a looser policy could become even longer, with supplyside information causing fresh worries about food prices. The heatwaves may compound the challenge.
Many economists have already revised their projections for CPI inflation upward for Q1FY25, and expect the headline print to average 5-5.2% during the quarter. This is about 10-30 basis points (bps) higher than the RBI's inflation forecast of 4.9% for the quarter.
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