India's Consumer Price Index (CPI) Expected to Reach 19005 Points by Quarter End
Inflation Rate Hits 4-Month High
Base Year of CPI Revised
According to Trading Economics global macro models, the WEB Consumer Price Index (CPI) in India is projected to reach 19005 points by the end of the current quarter. This indicates a steady increase in the price of goods and services consumed by households, known as inflation.
Latest data from the Central Statistics Office (CSO) reveals that the annual inflation rate in India edged up to 5.69% in December 2023, marking a slight increase from 5.55% recorded in November.
The Ministry of Statistics and Programme Implementation has recently revised the base year for calculating the CPI to 2012, replacing the previous base year of 2001. This revision is intended to better reflect current consumer spending patterns.
The Reserve Bank of India (RBI) emphasizes the importance of monitoring inflation in its Monetary Policy Report. The RBI's primary objective is to maintain price stability in the economy, and inflation is a key factor considered in monetary policy decisions.
To address inflation, the RBI employs monetary policy tools such as adjusting interest rates, open market operations, and quantitative easing. These measures aim to control the supply of money in the economy and influence economic activity and inflation.
The economic outlook for India remains positive, with strong growth projections. However, inflation remains a concern that policymakers are actively monitoring and addressing.
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