Last Updated: January 11, 2023, 13:30 IST
A recent study by a group of economists in collaboration with news agency Reuters has found that India’s retail inflation remained stable in December and within the Reserve Bank of India’s acceptable range for a second month. It was due to a moderate increase in food prices that was partially offset by high core inflation.
Consumer price inflation, which had reached an eleven-month low of 5.88 per cent in November, was estimated to remain at 5.90 per cent in December from a year earlier, according to the economists.
The poll was conducted among 45 economists between January 3-9, 2023.
Inflation has remained above the medium-term target of 4 per cent for more than three years, but if confirmed, it would be within the RBI’s comfort range of 2-6 per cent for a second month. The range of predictions was 5.40 percent to 6.40 percent. However, wholesale inflation, which was 5.85 percent in November, probably fell to 5.60 percent last month from a year ago.
“Although I believe that the sequential reduction in food prices would likely moderate inflation, I do not believe that it will fall significantly from the previous meeting since core inflation will continue to be sticky. And that should serve as a foundation ” Sakshi Gupta, the HDFC Bank’s chief economist told Reuters.
India continues to have high levels of core inflation and is considered by central banks worldwide to be a more accurate indicator of the sustainability of price pressures after stripping out volatile food and energy prices. The majority of economists anticipate that core inflation will stay high in the months ahead.
The recent statement from RBI Governor Shaktikanta Das suggested that the central bank was likely to continue its fight against inflation despite the worst being behind us.
India’s inflation likely remained steady at 5.90% in December: Reuters poll | Reuters
Read all the Latest Business News here