May 26, 2024 21:11 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
'Man-made disaster': Gujarat High Court takes suo motu cognizance of Rajkot gaming zone fire that killed 27 people | Payal Kapadia's Indian film All We Imagine As Light wins Grand Prix Award at Cannes | 'Was told to take the blame': Pune Porsche teen's grandfather told driver to take responsibility for crash | 24 killed in gaming zone fire in Gujarat’s Rajkot; PM Modi expresses grief | INDIA bloc performing mujra for vote bank, says Prime Minister Narendra Modi launching a scathing attack on opposition parties
India’s inflation expected to ease to 4.6% in the first three qtrs of next fiscal: RBI Bulletin
Photo Courtesy: Pixabay

India’s inflation expected to ease to 4.6% in the first three qtrs of next fiscal: RBI Bulletin

| @indiablooms | 20 Dec 2023, 11:36 pm

Mumbai: India’s inflation is anticipated to ease to 4.6% during the first three quarters of the fiscal year 2024-25 (FY25), according to the Reserve Bank of India's December 2023 bulletin released on Wednesday.

"CPI inflation rose to 5.6 percent in November as the recurrence of food price spikes punctured a brief respite in September and October, but it is expected to ease to 4.6 percent in the first three quarters of 2024-25," the RBI said.

India recorded a retail inflation rate of 5.6% in November, marking a three-month high.

"High-frequency food price indicators point to an increase in prices of key vegetables which may push CPI inflation higher in the near term. The ongoing rabi sowing progress for key crops like wheat, spices and pulses needs to be closely monitored. Elevated global sugar prices is also a matter of concern," it said in the bulletin.

The Reserve Bank of India noted that global commodity prices, especially for agricultural commodities, have generally decreased, except for rice.

However, the central bank underscored that the future inflation outlook is uncertain and will be influenced by unpredictable food prices.

The inflation projection for the fiscal year 2023-24 has been set at 5.4%, aligning with the announcement made by the Monetary Policy Committee (MPC) earlier this month.

"CPI inflation for Q1FY25 is projected at 5.2 percent; Q2 at 4.0 percent; and Q3 at 4.7 percent. The risks are evenly balanced," the RBI said.

According to the bulletin, based on data up to Q2FY24, there is only a 1% probability of stagflation in India, which is a combination of economic stagnation and high inflation.

The global growth outlook is described as fragile, with a potential further slowdown in 2024.

The RBI bulletin projects India's Gross Domestic Product (GDP) growth at 7% for the entire fiscal year 2023-24, with Q3 at 6.5% and Q4 at 6.0%.

It forecasts real GDP growth for Q1:2024-25 at 6.7%, Q2 at 6.5%, and Q3 at 6.4%.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.