India’s Economic Update: Retail Inflation Dips to 10-Month Low, IIP Surges

India’s retail inflation dropped to a 10-month low of 4.85% in March, aligning with the RBI’s tolerance band of 2-6%. Meanwhile, industrial production (IIP) saw a significant rise, hitting a four-month high at 5.7% in February.

Inflation Trends: ‘The Elephant in the Room’

Governor’s Perspective

Reserve Bank of India (RBI) Governor Shaktikanta Das addressed inflation as the primary challenge, noting its gradual decline but persistent pressure from service prices.

Recent Figures

Headline inflation for January-February 2024 decreased to 5.1% from December’s 5.7%, with food prices being a significant contributor despite a deflationary trend in fuel prices.

Food and Fuel Dynamics

Food inflation surged to 7.8% in February, driven by factors like vegetables, eggs, meat, and fish, while fuel prices sustained a deflationary trend. Core CPI, excluding food and fuel, dropped to 3.4% in February, reflecting a decline in both goods and services inflation.

Monetary Policy Outlook

The MPC maintained its inflation forecast for the fiscal year at 4.5%, contingent on factors like a normal monsoon, despite concerns over rising crude oil prices and supply chain disruptions due to the Red Sea crisis.

Piyush Shukla

Recent Posts

Exploring Bondi Beach: Sun, Surf and Sydney Culture

Bondi Beach is one of Australia’s most recognisable and loved coastal destinations. Located just minutes…

2 hours ago

WWE Icon John Cena Retires After 20-Year Career

As one of the all-time great WWE superstars, John Cena officially retired from in-ring competition…

3 hours ago

ISRO Projects Seven Launches Including Uncrewed Gaganyaan Mission by March 2026

The Indian Space Research Organisation (ISRO) has revealed plans for no less than seven space…

3 hours ago

Chakrashila Wildlife Sanctuary: Location, Species, and Latest Developments

The Chakrashila Wildlife Sanctuary in Assam has recently come into focus due to successful community-led…

3 hours ago

MRF Tyres Bags 2025 FIA European Rally Championship Title

India’s presence in global motorsport technology received a major boost as MRF Tyres clinched the…

3 hours ago

NTPC, NETRA and CSIR Scientist Receive Awards for Technological Innovations

India's push towards meeting its increasing energy demands while ensuring long-term sustainability received a boost…

3 hours ago