March CPI 2024: India’s Consumer Price Index (CPI) inflation, also called the retail inflation, eased to 4.85% versus 5.09 percent in February 2024. The inflation is slowly moving to RBI’s comfort level of 4%. While CPI Urban inflation came in at 4.14%, CPI rural inflation was at 5.45%. The Consumer Food Price Index (CFPI) inflation was reported at 8.52% versus 8.66% in February.
February IIP data:
India’s industrial production expanded by 5.7% in February 2024, as per official data. This growth contrasts with a 6% increase recorded in February 2023, according to the Index of Industrial Production (IIP). Industrial output for January was revised to 4.1% from 3.8%.
The National Statistical Office (NSO) reported that manufacturing output rose by 5% in February 2024, slightly lower than the 5.9% growth seen in the same month last year. Mining production surged by 8% in February 2024, while power output grew by 7.5%.
Over the period of April 2023 to February 2024, the IIP registered a growth of 5.9%, compared to a 5.6% expansion during the same period a year ago.
Earlier this month, RBI governor Shaktikanta Das in his monetary policy statement said, “Inflation has come down significantly but remains above the 4 per cent target. Food inflation continues to exhibit considerable volatility impeding the ongoing disinflation process.”
“Two years ago, around this time, when CPI inflation had peaked at 7.8 per cent in April 2022, the elephant in the room was inflation. The elephant has now gone out for a walk and appears to be returning to the forest. We would like the elephant to return to the forest and remain there on a durable basis. In other words, it is essential, in the best interest of the economy, that CPI inflation continues to moderate and aligns to the target on a durable basis. Till this is achieved, our task remains unfinished,” he had emphasised.
