People who buy vegetables on the local market in Noida, Uttar Pradesh, August 2, 2023
Group India Today | Group India Today | Getty Images
The Indian Inflation rate in February fell to 3.61% lower than expected in February, the Ministry of Statistics and the implementation of the country’s statistics said on Wednesday.
The economists interviewed Reuters expected a 3.98% reading reading. This is the first time since last summer that inflation below the goal of RBI of 4% and indicates the lowest monthly print of July 2024.
Food inflation, which is a key ingredient in the country in the country, hit 3.75%.
In March 5, Bank of America analysts marked that vegetable prices have fallen particularly since October, given larger supplies, especially for potatoes and tomatoes.
“We expect that vegetable price correction will begin to reverse, maybe as early as March, with the risks of thermal waves and disorders associated with the weather to the crops,” they added.
Inflation data on Wednesday come after GDP growth I just missed my expectations In the fourth quarter, 6.2%arrives. During the financial year to March 2025, the economy is expected to increase by 6.5% – sharp slowdown from 9.2% year before.
Bank of America analysts said that the monetary policy in the country now “turned firmly to support growth” because they are medium -term inflation forecasts over the goal of the reserve Bank of India of 4%.
Analysts expect 100 base points to reduce RBI by the end of 2025, including Reduction of a point of 25 basics delivered in February. “This will bring a repo rate to 5.50% by the end of 2025, which we identify as close to a neutral rate,” they said.
This is the story of the news. Refresh for updates.
