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MoneyWorks4Me

Just in: February CPI cools off more than expectation at 8.10%

12 Mar 2014 Evaluate

Reinforcing expectations that the Reserve Bank of India will leave interest rates on hold at its April 1 review after surprising investors with a 25 basis points hike in previous monetary policy in January, the provisional annual inflation rate based on all India general Consumer Price Index (CPI) (Combined) eased more than street’s expectation at 8.10% in February from 8.79% in January. Street was widely expecting retail inflation to ease at 25-month low of 8.35% in February. The corresponding provisional inflation rates for rural and urban areas for February 2014 are 8.51% and 7.55% respectively. Inflation rates (final) for rural and urban areas for January 2014 are 9.35% and 8.09% respectively.