Economists believe that the lower CPI and WPI numbers will not provide room for any monetary policy rate cut any time soon due to upside risks to core inflation, which excludes food and fuel. Photo: MintNew Delhi: India’s retail price inflation dropped to a new record low at 2.99% in April from a nearly five-month high of 3.89% in March on a lower base effect and lower food prices. The department also set up a technical review committee to periodically update WPI to make the series relevant during its life cycle. The Reserve Bank of India’s monetary policy committee, with a mid-term target retail inflation target of 4%, has maintained a hawkish stance on inflation. Inflation in the next couple of months is contingent upon the monsoon.

Source: Mint May 12, 2017 12:56 UTC