IGI Logo

Below the Perspective on IIP & CPI Data by Mr Nish Bhatt, Founder & CEO, Millwood Kane International 

It's good news on both fronts; the CPI inflation has eased much lower than the 4%. The retail inflation has eased to a 7-month low at 3.61% vs 4.31% in January. The latest inflation print is also important as it shows that the decline in inflation has been durable. What is also good to read is the core inflation print at 4% and the most important Food inflation at 3.75%. Food inflation has remained sticky due to seasonality.

On the industrial production front, the January IIP data stood at 5% vs 3.2% in December. The manufacturing

output at 5.5% is encouraging as it reflects the upbeat mood at the factory level. Overall, the latest data sets the event for an April rate cut. The RBI had indicated that their future moves will be data-driven. Geopolitical tensions and a spike in crude prices and trade tariffs remain key risk factors.

Above views are of the author and not of the website kindly read disclaimer