Cooling Inflation Strengthens Case for Monetary Easing in India

India’s retail inflation fell to 0.25% while wholesale inflation stayed at negative 1.21%, strengthening expectations of RBI rate cuts as price pressures remain contained.

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Cooling Inflation Strengthens Case for Monetary Easing in India

Cooling Inflation Strengthens Case for Monetary Easing in India
India’s retail inflation eased sharply in October, falling to 0.25 percent and marking one of the lowest readings in recent years. The decline extended a multi-month trend of controlled price pressures, driven by stable food categories and softer fuel costs. Wholesale inflation also remained subdued, registering a negative 1.21 percent year-on-year print, reinforcing expectations that overall price conditions are well-anchored. 
Economists noted that the combination of weak retail inflation and continued wholesale moderation could strengthen arguments for an RBI policy shift toward potential rate cuts in upcoming review cycles.