Consumer price index (CPI) or retail inflation is likely to undershoot the Reserve Bank's target in the January-March 2025 quarter, opening more policy space for easing the policy rate, Bank of Baroda said.
"With benign inflation this month and going forward, we expect a cumulative rate cut over the cycle could be at least 75 basis points, with successive rate cuts in next policy April and June 2025. With an intervening gap in Aug'25, the rate cuts cycle could restart from Oct'25, says the repo
The much-awaited inflation data of United States (US) signals cooling in headline Consumer Price Index (CPI) standing at 2.8 per cent year-on-year, as per the data released by U.S. Bureau of Labor Statistics.
India's inflation outlook showed a significant improvement in February 2025, as the year-on-year Consumer Price Index (CPI) inflation rate stood at 3.61 per cent, marking a decline of 65 basis points from the previous month.
According to a report by Centrum Institutional Research, the recent decline in consumer price inflation (CPI) for January could provide the Reserve Bank of India (RBI) with enough room for another 25 basis points (bps) rate cut in the near future.
On the inflation front, RBI expects Consumer Price Index (CPI) inflation to ease to 4.8 per cent in FY25, with Q4 FY25 inflation projected at 4.4 per cent. For FY26, inflation is forecasted at 4.2 per cent, with quarterly estimates as Q1 FY26: 4.5 per cent, Q2 FY26: 4.0 per cent, Q3 FY26:
The report highlighted that this tariff war could lead to slower growth and potential trade tensions. It noted that these tariffs may cause a notable decline in the real GDP of the US, especially if trading partners retaliate.
Inflation in India is expected to ease in the coming months, with Consumer Price Index (CPI) inflation projected to remain in the range of 4.2-4.5 per cent in the fourth quarter of FY25, according to a report by Bank of Baroda.
India's retail inflation, based on the All India Consumer Price Index (CPI) for December 2024, stands at 5.22 per cent, marking a decrease from the previous month.
India's Consumer Price Index (CPI) inflation is expected to moderate to 5 per cent in December 2024 from 5.5 per cent in November, according to a report by Bank of Baroda.