The finance ministry expects a broad-based moderation in inflationary pressures on the back of an anticipated reduction in food prices as a result of the uptick in summer sowing. The retail inflation rate remained stubbornly clung to the 5 per cent mark in seven of the past eight months.
"Core inflation is trending downwards, indicating a broad-based moderation in price pressures... Driven by strong domestic growth and benign global commodity prices, core inflation is declining continuously. Timely and multifrontal supply-side measures by the government have also helped the cause of price stability," the finance ministry said in its monthly economic report for February. The report was released on Friday.
These comments from the finance ministry precede the Reserve Bank of India's monetary policy committee (MPC) meeting, scheduled for April 3-5.
In February, high food prices kept the retail inflation rate at 5.09 per cent. A rise in the food inflation rate nullified the moderation in the core inflation rate, which excludes food and oil prices.
This story is from the March 23, 2024 edition of Business Standard.
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This story is from the March 23, 2024 edition of Business Standard.
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