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Retail Inflation Finally Easing to a Three-Month Low
May 12, 2017
Consumer inflation in India is finally showing signs of respite as it hit a three-month low in April, mainly because of a small rise in food rates. However, since a summer rebound is in consideration, RBI is likely to keep the interest rates fixed. For now, it is keen on keeping the mid-term inflation rate at 4% as members of Monetary Policy Committee stand by their opinion that there will be upsides to this inflation.
According to Reuters poll of economists, the main policy target of RBI i.e. consumer prices rose by 3.49% in April, as compared to 3.81% in the month before. It is the general consensus that RBI will not change the rates at least for the next six months.
