India’s inflation rose less than expected in March, taking pressure off the central bank for more action after it unexpectedly tightened monetary policy last week.
Consumer prices rose 3.81 percent in March from a year earlier, the Statistics Ministry said in a statement from New Delhi on Wednesday
That’s slower than the 3.94 percent median estimate in a Bloomberg survey of 38 economists and compares with a February reading of 3.65 percent
Industrial production fell 1.2 percent in February after rising 2.7 percent in January; economists had predicted a 1.3 percent gain
The data gives the Reserve Bank of India time to assess the outlook for the $2-trillion economy after Governor Urjit Patel last week unexpectedly raised the reverse repo rate to fight inflation, following the U.S. Federal Reserve in withdrawing stimulus. The numbers further indicate the impact of demonetization is waning, though other indicators point to strengthening activity and rising employment.
Consumer food prices eased to 1.93 percent from February’s 2.01 percent
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