India Honest has been assured that in spite of many climatic calamities our nation faced in last four months that caused huge losses to agricuture, some "Acche Din" are coming back for people of nation, as the REUTERS team has confirmed that as on May 12 India's consumer price inflation eased to a four-month low of 4.87 % in April, while the annual industrial output growth slowed to 2.1 percent in March,as the government data showed on Tuesday.
The economists and Analysts commented on the data: as follows :
"Both the industrial production growth and CPI inflation numbers are showing a huge disconnect from the leading indicators.Food price data from the Ministry of Consumer Affairs shows a sequential increase in prices of cereals, sugar, milk, edible oils, etc. But somehow this is not reflected in the actual retail inflation".
"A sharp decline in core inflation and favourable base have contributed to CPI moderation. One thing is for sure: growth has weakened considerably and the government somehow has to find out radical measures to move investment sentiment."
"With inflation coming lower and IIP (industrial output) also a little low, chances of rate cut in June have increased.The fears of pre-monsoon showers on food inflation is not coming through as food supply has been managed quite well.".
"The fact that there is hardly any credit growth and both inflation and IIP are benign make a case for cutting rates. Markets will move in a 3-5 basis points range this week but going ahead to June sentiment will turn positive on expectations of a rate cut."
"The inflation number is welcome. We wanted to see the continuation of softening of inflation. That is the only good thing going for bond markets.We can expect a rate cut sometime in June. If RBI wants to lower rates before inflation catches up due to monsoon-related risks then June is the time."
"The larger message is the trend of falling inflation would continue.Bond yields are unlikely to react. The reason for RBI's pause after two rate cuts this year is a possible hike in rates by U.S. Federal Reserve."