Inflation outlook positive: Finmin – Times of India

Mar22,2024


New Delhi: Country's inflation outlook positive for the coming months and core inflation There is a downward trend, indicating broad-based softening price pressureThe Finance Ministry's monthly economic outlook for February said on Friday.
“Summer sowing is likely to help ease the surge food prices,'' the report said, retail inflation Remained stable and within the target range for the sixth consecutive month. Core inflation continued to decline, driven by strong domestic growth and benign global commodity prices. Timely and multi-front supply-side measures by the government have also helped in price stability. “Core inflation refers to inflation excluding food and fuel,” the report said.

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It said strong growth with stable inflation and external account and a progressive employment outlook helped the Indian economy close the current financial year on a positive note. But it cautioned that headwinds such as tightening crude prices and global supply chain disruptions remain for trade. “Nevertheless, India, overall, anticipates a bright outlook for FY2025,” the report prepared by the Department of Economic Affairs said.
It said stable consumption demand is supported by resilient urban demand conditions and the forecast of normal monsoon in FY2025 is expected to strengthen the recovery in rural consumption demand.
It also said that the results of the latest Household Consumption Expenditure Survey (HCES) 2022-2023 suggest inclusive growth over the last decade, while also reiterating improvement in rural demand scenarios.
The report said current container freight rates are about half the peak recorded during the Covid crisis. It cautioned that continued increases in shipping costs due to the disruption could lead to inflation. “The crisis is also echoing in global food prices. Disruptions in grain shipments from the Russian Federation, Ukraine and Europe pose a risk to global food security,” the report said, referring to the ongoing crisis in the Red Sea shipping route. “



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