March CPI falls to 4.83 pct; February IIP at 2 pct

12 April, New Delhi

Retail inflation, as measured by the consumer price index (CPI), fell to 4.83 percent, compared to economists’ forecast of 5.05 percent, while industrial output, measured by index of industrial production (IIP), rose to two percent compared to estimates of 1.5 percent.

The fall in CPI was led by weakening of core inflation while electricity, minerals and gems and jewellery led to strength in IIP.

According to the analysts, a better-than-expected CPI and IIP numbers will work wonders for the economy as well as markets.

Citi Chief Economist India Samiran Chakraborty agreed, saying that the downtrend in inflation is likely to continue. “We are seeing early signs of a decline in core inflation,” he said.

On IIP, he expected a gradual recovery in the struggling capital goods sector even as consumer durables continue to remain strong.