Perspective on CPI data for March 2025 by Mr. Sanjay Kumar, MD & CEO, Rassense Pvt Ltd
Below the Perspective on CPI data for March 2025 by Mr. Sanjay Kumar, MD & CEO, Rassense Pvt Ltd
“The steep decline of over 100 basis points in food inflation during March 2025 as compared to the previous month and lowest after November 2021, along with the headline inflation being the lowest since August 2019, together combine into a coveted testimony towards resilient and sustained economic growth. The recent rate cut by the RBI, along with strengthened purchasing power, will boost liquidity in the hands of the common man, thereby driving consumption growth. This also augurs well for the food services sector in terms of lowered prices for natural produce and raw materials, thus providing some relief in margins.
Having said that, there is a need to be watchful of temporary hurdles that may come along the way due to the geopolitical scenario and the Trump tariff, influencing INR fluctuations against the USD. Last but not least, there is a dire need to infuse technology in the agriculture sector as the same can go a long way in boosting efficiency and further reducing food prices.
The easing momentary policy is likely to spur demand, and hence, we expect some temporary spikes in inflation. However, given the benign oil prices on an aggregate, there is a likeliness of a sustained neutral stand on CPI for next few quarters.”
Above views are of the author and not of the website kindly read disclaimer
