Perspective on CPI Numbers by Mr. Vivek Rathi - National Director Research, Knight Frank India
Below the Perspective on CPI Numbers by Mr. Vivek Rathi - National Director Research, Knight Frank India
“While consumer headline inflation fell to a five-and-a-half-year low in March 2025 due to a seasonal drop in vegetable prices, core inflation remains stubbornly high, exceeding 4%. Excluding the food and fuel basket, inflationary pressures persist among households, potentially tightening consumption expenditure, especially for lower-income households that are more sensitive to price increases.
As household prices remain elevated, it is crucial for commercial banks to pass on the benefits of rate cuts to consumers to support domestic consumption and growth. This is also vital for boosting housing demand in the affordable segment.
Looking ahead, the revival of the Indian rupee and multi-year low crude oil prices offer some relief from external price pressures. However, any disruptions in global supply chains caused by reciprocal trade tariffs pose upward risks to inflation.”
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