According to the article titled 'State of the Economy,' India is experiencing a broad-based acceleration in high-frequency indicators, reflecting the gaining of momentum in various sectors.
New Delhi: In a recent article published in the Reserve Bank of India (RBI) Bulletin, the central bank highlighted a significant moderation in retail inflation for the month of September, which has strengthened India's macroeconomic fundamentals, even as global growth faces headwinds in the third quarter.
According to the article titled 'State of the Economy,' India is experiencing a broad-based acceleration in high-frequency indicators, reflecting the gaining of momentum in various sectors. The RBI report noted that deleveraging and increased capacity utilization have empowered capital-intensive industries, propelling their growth.
One of the notable aspects mentioned in the article is the stability of the Indian rupee (INR), which has exhibited low volatility, contributing to a stable economic environment. Retail inflation in the country has also seen a significant decline, reaching a three-month low of 5.02 percent on an annual basis in September. This decline is primarily attributed to the moderation in prices of vegetables and fuel, which brought inflation back within the comfort zone of the Reserve Bank.
In comparison, the Consumer Price Index (CPI)-based inflation was recorded at 6.83 percent in August and 7.41 percent in September 2022, with a peak of 7.44 percent in July this year.
The RBI article also highlighted the global economic scenario, pointing out a loss of momentum in global growth during the third quarter. This slowdown is primarily attributed to weak manufacturing activity and tight financial conditions in advanced economies, while some emerging market economies have managed to deliver growth surprises.
The article further identified two key risks to global growth. First, surging yields, driven by potential interest rate hikes in some major economies, could pose a threat. Second, the soaring prices of crude oil have emerged as an immediate concern, given their potential to disrupt economic stability.
The Reserve Bank of India emphasized that the views expressed in the article are those of the authors and do not necessarily represent the views of the central bank. The report underscores the importance of India's recent success in moderating inflation and its potential to strengthen the country's macroeconomic fundamentals amidst a challenging global economic landscape.
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New Delhi: In a recent article published in the Reserve Bank of India (RBI) Bulletin, the central bank highlighted a significant moderation in retail inflation for the month of September, which has strengthened India's macroeconomic fundamentals, even as global growth faces headwinds in the third quarter.
According to the article titled 'State of the Economy,' India is experiencing a broad-based acceleration in high-frequency indicators, reflecting the gaining of momentum in various sectors. The RBI report noted that deleveraging and increased capacity utilization have empowered capital-intensive industries, propelling their growth.
One of the notable aspects mentioned in the article is the stability of the Indian rupee (INR), which has exhibited low volatility, contributing to a stable economic environment. Retail inflation in the country has also seen a significant decline, reaching a three-month low of 5.02 percent on an annual basis in September. This decline is primarily attributed to the moderation in prices of vegetables and fuel, which brought inflation back within the comfort zone of the Reserve Bank.
In comparison, the Consumer Price Index (CPI)-based inflation was recorded at 6.83 percent in August and 7.41 percent in September 2022, with a peak of 7.44 percent in July this year.
The RBI article also highlighted the global economic scenario, pointing out a loss of momentum in global growth during the third quarter. This slowdown is primarily attributed to weak manufacturing activity and tight financial conditions in advanced economies, while some emerging market economies have managed to deliver growth surprises.
The article further identified two key risks to global growth. First, surging yields, driven by potential interest rate hikes in some major economies, could pose a threat. Second, the soaring prices of crude oil have emerged as an immediate concern, given their potential to disrupt economic stability.
The Reserve Bank of India emphasized that the views expressed in the article are those of the authors and do not necessarily represent the views of the central bank. The report underscores the importance of India's recent success in moderating inflation and its potential to strengthen the country's macroeconomic fundamentals amidst a challenging global economic landscape.
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