Market Reports | Product Report

Analysis – CPI Inflation – Feb 2024 & IIP Report – Jan 2024

Published: March 30, 2024
Author: TEXTILE VALUE CHAIN
Highlights
CPI:
  • In February, headline inflation held steady at 5.1%, marking the sixth consecutive month within the RBI’s target band.
  • While there was a broad-based moderation in prices across all major categories (excluding food) , the inflation was kept elevated by higher food prices.
  • Core inflation remained subdued and moderated even further, consistently staying below the 4% threshold for three consecutive months.
  • Continued double digit trends in vegetable (30.3%), spices (13.5%) and pulses (18.9%) remain a source of concern.
  • Looking ahead, a favourable base effect is expected to persist until July 2024, helping absorb potential upward risks to price pressures to a certain extent.
  • For FY24, we expect inflation to average 5.4%, with Q4FY24 at 5.1%. We expect inflation to average 4.8% in FY25.
IIP:
  • IIP growth eased to 3.8% in January, following an upwardly revised 4.2% in December.
  • Manufacturing growth moderated to 3.2% (Vs 4.5% in December).
  • Consumer durables output rose sharply (by 10.9%) on a favourable base; non-durables output declined.
  • Going ahead, a durable and broad-based improvement in consumption remains crucial for industrial activity.

IIP_-_January_2024

CPI_Inflation_-_Feb_2024

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