NEW DELHI: Industrial growth slipped in January, failing to build on modest recovery in the
month before while consumer inflation inched up in February though remaining well below the
central bank’s target, strengthening the case for another rate cut in the next monetary policy
review.
Inflation, as measured by the Consumer Price Index (CPI), rose to a four-month high of 2.57%
from 1.97% in January, data released by the statistics office on Tuesday showed.
The simultaneously released Index of Industrial Production (IIP) showed a 1.7% rise in industrial output in January. Industrial growth was 2.6% in December, revised upward from 2.4% estimated initially. Retail inflation has stayed below the Reserve Bank of India’s (RBI) medium-term target of 4% for the seventh straight month and has opened up the possibility of more rate cuts as industrial growth remains tepid. “With inflation remaining below RBI’s target, inflationary expectations declining and growth profile weakening, RBI may frontload its monetary easing in the beginning of FY20,” said Devendra Kumar Pant, chief economist, India Ratings. The RBI last month lowered the benchmark repo rate by 25 basis points, its first rate cut in 17 months. Poor Start to the Fourth Quarter One basis point is one-hundredth of a percentage point......
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Source: https://economictimes.indiatimes.com/news/economy/indicators/industrial-growth-slows-down-in-january-inflation-hits-a-4-month-high/printarticle/68384387.cms (Accessed on 13 March, 2019)
The simultaneously released Index of Industrial Production (IIP) showed a 1.7% rise in industrial output in January. Industrial growth was 2.6% in December, revised upward from 2.4% estimated initially. Retail inflation has stayed below the Reserve Bank of India’s (RBI) medium-term target of 4% for the seventh straight month and has opened up the possibility of more rate cuts as industrial growth remains tepid. “With inflation remaining below RBI’s target, inflationary expectations declining and growth profile weakening, RBI may frontload its monetary easing in the beginning of FY20,” said Devendra Kumar Pant, chief economist, India Ratings. The RBI last month lowered the benchmark repo rate by 25 basis points, its first rate cut in 17 months. Poor Start to the Fourth Quarter One basis point is one-hundredth of a percentage point......
To read the full article, visit
Source: https://economictimes.indiatimes.com/news/economy/indicators/industrial-growth-slows-down-in-january-inflation-hits-a-4-month-high/printarticle/68384387.cms (Accessed on 13 March, 2019)
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