India inflation likely eased below 4% in February for the first time in six months
inflation likely eased below the Reserve Bank of India's medium-term target of 4.0% for the first time in six months on moderating food price rises, a Reuters poll showed, bolstering expectations of interest rate cuts.
As fresh winter produce hit markets over the past few months, food items — which make up nearly half of the inflation basket — saw a sustained slowdown in price increases.
That marked a welcome reprieve from supply disruptions last year when unpredictable monsoons and intense heat waves sent food prices soaring, often by double digits.
A Reuters poll of 45 economists taken March 4-10 predicted inflation as measured by the annual change in the consumer price index fell to 3.98% in February from 4.31% in January.
Forecasts for the data, set to be released on March 12 at 1030 GMT, ranged from 3.40% to 4.65%, with nearly 70% of respondents expecting it to come in at or below the RBI's medium-term target of 4.0%. Only five predicted it would exceed January's reading.
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