Bank symbol with a coin stack. Concepts of the banking system, rising interest rates, inflation, deflation and savings. IStock Photo for BL | Photo credit: iStockphoto
NDIA inflation of NDIA 2025, retail inflation prospects for updates from May 2025: Inflation for retail for May is likely to be less than 3 percent. Official data can be seen on Thursday, and if the pressure is less than 3 percent, this will be the first time since April 2019.
The inflation rate of headline retail based on the consumer price index (CPI) was 3.16 percent with a low of 69 months.
Top prices
In the month examined, the vegetable prices recorded a strong reduction and a mixed trend on a sequential basis annually. According to Crisil’s monthly indicator of the cost of food plates, tomato prices fell by 29 percent, the onion by 15 percent and the potato by 16 percent in May. However, potato and tomato prices rose by 3 percent and 10 percent on a sequential basis, while onion prices dropped by 10 percent.
All eyes are now directed to Monsun, which arrived early, but has slowed down since May 29. The Indian metrological department (IMD) predicted a revival on Thursday.
Rate shortened?
An important question is whether there should be another political interest rate (better known as repo interest rate or the RBI for commercial banks). The signal from the RBI governor Sanjay Malhotra is that there could be a break for some time.
The MPC has decided to change the attitude of accommodation too neutral. From here, the MPC will carefully evaluate the incoming data and the developing prospects in order to determine the future course of monetary policy in order to achieve balance with the correct growth.
It should be noted that the retail inflation was below 3 percent between November 2018 and April 2019 for 6 consecutive months. During this period, the political interest rate was reduced from 6.5 percent by 50 basis points to 6 percent. The political interest rate is currently 5.5 percent.
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- 07:02 | June 12, 2025
Live updates of retail inflation: World Bank reduces the growth forecast of India by 40 basis points to 6.3%
On Tuesday, Wold Bank lowered the economic growth forecast by India for 40 basis points (BPS) for the current financial year (GJ 26). India would still keep the day of the fastest growing economy in the world, said the multilateral institution.
The World Bank lowers India’s growth forecast by 40 basis points to 6.3%
The World Bank lowers India’s growth forecast for financial year 26, but still projects it as the fastest growing economy with 6.3%.
Published on June 12, 2025