Reaction quote on IIP & CPI data By Shlok Srivastav, Appreciate
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Below the quotes on today’s IIP & CPI inflation data Shlok Srivastav, Co-founder & COO, Appreciate, a SEBI and IFSCA registered fintech company
“The CPI print for November at 5.55% does present itself as a cause for concern, given that it is still too uncomfortably high for RBI’s medium-term inflation target of 4%. Nevertheless, the print surprised on the positive side, coming in below market estimates.
Earlier on December 8, the address by RBI Governor Shaktikanta Das did make it explicit that volatile food prices — primarily due to a late Kharif harvest and a lower-than-usual rabi sowing — could contribute to heightened inflationary pressure. With the fading of food and fuel price pressures, the CPI print should ideally moderate in the last quarter of the current financial year.
Further, for October 2023, IIP growth clocked in at 11.7%, the highest figure recorded in the last 16 months, due to a favourable base effect. Better output from the infrastructure and construction-affiliated sector is heartening to see in a global macro-environment where growth has been taking a beating.
The mining sector delivered a strong performance by logging in a robust double-digit growth of 14.2%. Manufacturing, on the other hand, reported a rather disappointing nominal gain of less than a percentage point. Looking ahead, without a durable revival of consumption demand, the Indian economy will have to brace for elevated risks of a global slowdown in the background of geo-political tensions and weather catastrophes.”
Above views are of the author and not of the website kindly read disclaimer
