“Bloomberg: India’s Inflation Eases to Three-Month Low, Providing Relief for Rate-Setters and Consumers Alike”
India’s inflation has cooled down, reaching a three-month low in January. The latest data from the statistics ministry shows a 5.10% increase in the consumer price index, in line with Bloomberg’s economist surveys. The decrease in food prices, which make up half of the index, played a major role in this decline. However, the Reserve Bank of India remains cautious, with uncertainties in the food inflation outlook keeping them in a hawkish stance. Experts predict that the central bank’s actions will focus on liquidity, while the government continues to implement interventions to mitigate rising prices. These efforts have already led to a decrease in housing prices, clothing and footwear costs, and a slight decline in fuel prices. With India’s national elections approaching, the government’s efforts to control inflation are especially significant. In addition to curbing exports and extending low import duties, the latest figures also show growth in factory output. India’s inflation rate may be cooling, but the country’s economic landscape remains complex and ever-changing.
