(Reuters) – India’s retail inflation eased to 3.61% in February from a revised 4.26% in January, government data released on Wednesday showed.
A Reuters poll had projected retail inflation at 3.98%.
COMMENTS
GARIMA KAPOOR, ECONOMIST, INSTITUTIONAL EQUITIES, ELARA SECURITIES, MUMBAI
“February CPI came below ours and market expectations led by a sharp fall in food inflation. There is expectation that our estimate of 4.8% for FY25 will likely see a downside.”
“We continue to expect the RBI to cut repo rate by 25 bps in April policy even as it continues to ease the liquidity deficit in the system.”
RADHIKA RAO, SENIOR ECONOMIST, DBS BANK, SINGAPORE
“Inflation decelerated at a faster pace than expected as food corrected sharply in February, on the back of a year-on-year decline in vegetables and pulses, while edible oils alongside cereals held ground.”
“The jump in core inflation to 4% reflected higher gold costs, while the contribution of other segments was little changed. Armed with this low inflation read, the MPC is likely to be comfortable to ease rates in April.”
(Reporting by Aleef Jahan, Kashish Tandon in Bengaluru; Editing by Maju Samuel)
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