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Strengthening of economic activity in India likely to sustain, retail inflation to ease: RBI article

21 Dec 2023 Evaluate

An article published in the Reserve Bank of India (RBI) bulletin has stated that broad-based strengthening of economic activity in India will likely be sustained and retail inflation is expected to ease to 4.6 per cent in the first three quarters of 2024-25 from the latest print of 5.6 per cent.

It said ‘In India, the broad based strengthening of economic activity that is underway will likely be sustained by easing input costs and corporate profitability’. Consumer Price Index (CPI) based inflation rose to 5.6 per cent in November as the recurrence of food price spikes punctured a brief respite in September and October.

The article authored by a team led by RBI Deputy Governor Michael Debabrata Patra said ‘... but it is expected to ease to 4.6 per cent in the first three quarters of 2024-25’. It further said domestic financial markets have been lifted by the abiding strength of the real economy. However, the RBI said the article does not represent the views of the central bank.

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