Retail Inflation Drops to 4-Month Low at 5.22%, While Rupee Hits New Lows!
Retail Inflation Drops: India’s inflation rate decreased to a four-month low of 5.22 percent in December, down from 5.48 percent the previous month, thanks to a slight drop in food prices. This information was revealed in data released on January 14th.
Despite this improvement, December marked the fourth consecutive month with inflation above 5 percent. However, food inflation in India dropped below 9 percent for the first time in four months.
The high inflation rate has been a key factor in the Reserve Bank of India’s decision to maintain its policy unchanged. At its December meeting, the Reserve Bank of India kept the policy rate at 6.5 percent for the eleventh consecutive time.
The monetary policy committee is expected to make a decision on interest rates in February following the Budget announcement. Experts are predicting a rate cut in February to reduce the cost of capital and stimulate economic growth.
India’s economy is projected to have slowed to 6.4 percent in 2024-25, below the RBI’s estimate of 6.6 percent and the government’s target range of 6.5-7 percent growth.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.