of India inflation It hit a four-month high in June, which proves this point. Central bankdecision to keep Rate of interest Higher for longer.
consumer price Index The statistics ministry said on Friday that GDP grew 5.08% in May from a year earlier, compared with 4.75% in May. This was higher than the median forecast of 4.80% growth made by economists in a Bloomberg survey.
Inflation is moving very slowly toward the Reserve Bank of India's 4% target and it is too early to discuss cutting interest rates, Governor Shaktikanta Das said on Thursday.
The RBI has kept its policy rate unchanged at 6.5% for more than a year, though economists have been speculating that the central bank is inching closer to a change. There seems to be a consensus among external members of the RBI. monetary policy The committee said high interest rates were hampering growth.
food pricesInflation, which accounts for nearly half of the consumer price basket, rose to 9.36% from a year earlier, compared with 8.69% in May. core inflationExcluding volatile food and energy costs, inflation rose to 3.15% in June from a year earlier, compared with 3.12% in May, according to Bloomberg Economics calculations.
The monsoon, which irrigates half of the country's agricultural land, has covered the entire country, bringing some relief to farmers. In the coming days, sowing of monsoon crops like rice and pulses will gain momentum.
“We expect better sowing patterns and spatial distribution of rainfall to eventually ease pressure on prices,” said Upasana Bhardwaj, chief economist at Kotak Mahindra Bank. However, the rise in prices means the central bank is unlikely to be in a hurry to ease monetary policy anytime soon.
Other key highlights of the CPI data:
consumer price Index The statistics ministry said on Friday that GDP grew 5.08% in May from a year earlier, compared with 4.75% in May. This was higher than the median forecast of 4.80% growth made by economists in a Bloomberg survey.
Inflation is moving very slowly toward the Reserve Bank of India's 4% target and it is too early to discuss cutting interest rates, Governor Shaktikanta Das said on Thursday.
The RBI has kept its policy rate unchanged at 6.5% for more than a year, though economists have been speculating that the central bank is inching closer to a change. There seems to be a consensus among external members of the RBI. monetary policy The committee said high interest rates were hampering growth.
food pricesInflation, which accounts for nearly half of the consumer price basket, rose to 9.36% from a year earlier, compared with 8.69% in May. core inflationExcluding volatile food and energy costs, inflation rose to 3.15% in June from a year earlier, compared with 3.12% in May, according to Bloomberg Economics calculations.
The monsoon, which irrigates half of the country's agricultural land, has covered the entire country, bringing some relief to farmers. In the coming days, sowing of monsoon crops like rice and pulses will gain momentum.
“We expect better sowing patterns and spatial distribution of rainfall to eventually ease pressure on prices,” said Upasana Bhardwaj, chief economist at Kotak Mahindra Bank. However, the rise in prices means the central bank is unlikely to be in a hurry to ease monetary policy anytime soon.
Other key highlights of the CPI data:
- Housing prices rose by 2.69% from a year ago, while it rose by 2.56% last month
- Prices of clothes and footwear remained stable at 2.73% in June compared to a year ago, while it was 2.74% in May.
- Fuel and electricity costs fell by 3.66% last month
- Besides, factory output grew 5.9% in May, compared with a 5% increase in the previous month.