InvestorQ : Do you think the latest inflation and IIP growth numbers announced on 12 March were encouraging?
NISHA Nayak made post

Do you think the latest inflation and IIP growth numbers announced on 12 March were encouraging?

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2 years ago
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Certainly they were encouraging. Let us look at inflation first. CPI inflation for February moderated by 100 basis points to 6.58%! The fall in inflation was largely led by a 280 bps fall in food inflation on the back of a bumper Rabi output.

While inflation is still above the RBI outer limit of 6%, the government may use the inflation trajectory to cut rates. The IIP growth for January also came in better at 2% with a boost to mining and electricity.

Even manufacturing saw some traction in the month of January, although the overall IIP for the current fiscal so far is not even 0.50%. While IIP is yet to pick up momentum, there has been positive cues coming from PMI manufacturing and services. Hopefully, these should be the green shoots the markets were looking out for.

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