Rising inflation and rising consumer spending and investment are likely to boost India’s economy, as the central bank faces a balanced effort to end inflation through inflation without hurting economic growth, the economist said.Asia’s third-largest economy is likely to grow by 4.0% in the January-March quarter since last year, a Reuters survey said last week. That could be the slowest pace of the year, following a 5.4% growth in the previous quarter. Data forecasts, which are due to appear at 1200 GMT on Tuesday, ranged from 2.8% to 5.5% in a May 23-26 survey of 46 economists.
Nearby economic opportunities are darkened by inflation, which reached an eight-year high of 7.8% in April. Rising energy and commodity prices following the crisis in Ukraine are also hampering economic activity.The Reserve Bank of India (RBI) raised the benchmark repo rate (INREPO = ECI) by 40 points at a random meeting earlier this month. A recent Reuters poll shows more than a quarter of economists, 14 out of 53, expect the RBI to rise by 35 points to 4.75% in June, while 20 expect a major move from 40-75 points, including 10 predictors. 50. -basic-point increase.
Earlier this month, India’s largest bank was likely to raise inflation in June and would consider rising interest rates. Economists have reviewed India’s 2022 growth forecast as rising food and energy prices hit consumer spending – accounting for 55% of the economy – while many companies passed rising consumer spending costs to consumers.”Rising crude oil prices, food and fertilizer will weigh on household income and expenditure in the coming months,” Moody’s, a rating agency, said in a statement. We have reduced India’s forecast for growth to 8.8% from 9.1% for the 2022 calendar year. The fall of the rupees by about 4% against the dollar this year has also made imports more expensive, prompting the federal government to restrict the sale of wheat and sugar and reduce fuel taxes, joining the RBI in the fight against inflation.
High frequency indicators showed a shortage of commodities and high commodity prices in the mining, construction and manufacturing sectors, as debt growth increased and districts spent more. The perception of Indian consumers declined in early May, declining for the second month in a row, as rising oil prices and inflation affect domestic revenues, according to a study by India’s RefinitivIpsos.Unemployment rose to 7.83% in April from 7.57% in March, according to the Center for Monitoring Indian Economy, an independent tank based in Mumbai.RBI Governor Shaktikanta Das said last week the central bank’s main goal was to bring inflation closer to its target but it could not ignore the growing concerns.
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