The May 5-7 poll median of more than 40 economists predicted India’s annual consumer price inflation fell to 5.68% in April from March’s 5.91%, still above the Reserve Bank of India’s medium-term target of 4.00%. Forecasts in the poll ranged between 4.50% and 7.00% and about 80% of participants expected inflation to be below the upper band of the RBI’s inflation target range of 2.00-6.00%. “The economic inactivity caused by the lockdown has been a big driver for inflation in April, leading to a broad-based deceleration in price pressures across all components except food,” said Rini Sen, India economist at ANZ. “Forecasts of a good monsoon harvest suggest food prices will remain anchored. With an imminent recovery in economic activity looking highly unlikely, inflation is likely to ease back below the RBI’s 4.00% target within the next few months,” noted Darren Aw, Asia economist at Capital Economics.

Source: bd News24 May 08, 2020 04:07 UTC