Economics
India's Inflation Pickup Unlikely to Worry Central Bank Too Much
- CPI rose 2.92% in April, well below the RBI’s 4% target
- Core inflation set to ease further as demand slowdown grips
A vendor sits at a fruit stall at Crawford Market in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Inflation in India is rebounding and on course to accelerate after the world’s biggest election concludes this month. Yet that’s unlikely to distract monetary policy makers from their focus on supporting economic growth.
Data on Monday showed consumer prices rose 2.92% in April from a year earlier, compared with the 2.99% median estimate in a Bloomberg survey of 39 economists. While the reading is the highest in six months, the price growth is, for now, well below the central bank’s 4% medium-term target for this year.