India’s CPI inflation plummets to 0.25%, raising demand concerns

India’s CPI inflation drops to 0.25 %, easing price pressure but sparking demand-weakness concerns.

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India’s CPI inflation plummets to 0.25%, raising demand concerns

India’s CPI inflation plummets to 0.25%, raising demand concerns
India’s annual retail inflation fell to a record low of 0.25 % . Analysts highlight that while low inflation relieves price pressure, it also signals slackening consumer demand and elevated deflation risks as food inflation dropped sharply into negative territory. 
The subdued numbers may reduce pressure on the Reserve Bank of India to hike rates further, but raise questions about underlying growth momentum. 
Tags:
  • economy
  • India