INSUBCONTINENT EXCLUSIVE:
Consumer inflation had in the previous month slowed to its lowest rate since June 2017Consumer inflation stood at a provisional 2.05 per
cent in January, its lowest level recorded since June 2017, government data showed on Tuesday
That marked a sixth consecutive month in which inflation came in within the central bank's medium-term target
At 2.05 per cent, inflation in January was lower than economists' expectations
Economists had on an average expected inflation at 2.48 per cent in January, according to a poll of 30 economists surveyed by news agency
according to the official statement.( As mentioned by government data)The Reserve Bank of India earlier this month eased its monetary
policy, by reducing the repo rate - the key interest rate at which it lends short-term funds to commercial banks - by 0.25 per cent to 6.25
That was largely seen as a move by the RBI that could lead to lower EMIs (equated monthly instalments) for loan borrowers
The central bank also changed its policy stance to "neutral" from "calibrated tightening", a shift that allows it to act either way on the
consumer inflation, which it tracks primarily to formulate its policy
Consumer inflation - determined by Consumer Price Index (CPI) - indicates the rate of increase in consumer prices.( RBI projects economic
growth at 7.4% in 2019-20)The central bank has set an inflation target of 2.8 per cent for the last quarter of the current financial year
In its February 7 policy statement, it projected consumer inflation at 3.2-3.4 per cent in the first half of next financial year, beginning
For the third quarter of 2019-20, the inflation target is set by the RBI at 3.9 per cent.Consumer inflation had stood at 1.46 per cent in
June 2017.Separate official data showed growth in industrial production - determined by Index of Industrial Production (IIP) - picked up to
