Below are Views On CPI & IIP data By Mr. Nish Bhatt, Founder & CEO, Millwood Kane International
“Finally, something to cheer about, the retail inflation has fallen way below the central bank's comfort level. After almost a year of near 6% or higher inflation, we are now witnessing a fall in inflation primarily on account of a favorable base and steep fall in food and vegetable prices. The fall has come at the right time ahead of MPC meet next month, it will certainly raise hopes from MPC on rates.
Post a recovery in industrial production in October, the IIP data for the month of November has plunged again, the negative print or de-growth in IIP is a cause of concern, this uneven growth puts some doubt on the recovery in overall economic growth. Falling IIP, core sector data hints that RBI should wait and stay with easy liquidity measures, government with further reforms and stimulus measures in the upcoming Union Budget..”
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