Here's a summary of the article about retail inflation and industrial production in India:
Retail inflation in India decreased to 5.09% in February from 5.10% in January, remaining within the Reserve Bank of India's (RBI) tolerance range of 2-6%. This slight decline was in line with economists' expectations.
India's industrial production remained steady at 3.8% in January, according to data from the Ministry of Statistics and Programme Implementation.
The RBI, in its February meeting, kept the repo rate unchanged at 6.50% and highlighted "significant and recurrent food price shocks" as a major risk to the ongoing downward trend in inflation.
Despite concerns about rising food prices and uncertainties surrounding crude oil costs, the RBI maintained its inflation forecast for FY24 at 5.4%. The central bank expects inflation to be around 5% in the current quarter ending March 31.
RBI Governor Shaktikanta Das emphasized the impact of food price fluctuations on inflation, stating that while food prices remained volatile, fuel prices experienced deflation. Core inflation (excluding food and fuel) hit a four-year low of 3.8% in December.
Geopolitical events affecting supply chains, volatility in international financial markets, and commodity prices are cited as key factors contributing to upward inflation risks by the RBI. The RBI's inflation projections for the upcoming fiscal quarters range from 4% to 5%, assuming a normal monsoon next year.
Overall, while retail inflation has remained within the RBI's tolerance range, the central bank continues to monitor various factors that could impact inflation, including food prices and international market conditions.
