Mumbai: Annual consumer price inflation eased for a fourth straight month in November to 4.38 per cent, its lowest level since government started releasing the data in 2012, government data showed on Friday.
The latest number was lower than a Reuters poll forecast of 4.50 per cent and October's 5.52 per cent print.
COMMENTARY
R Sivakumar, head of fixed income at Axis Asset Management, Mumbai:
"A significant part of this (easing inflation) is on account of the base effect, and we should see that reverse and expect inflation within the next three months to go back to about the 5.5 per cent range."
"We don't see any immediate change in the RBI's stance based on what I see today."
Bill Adams, senior international economist at PNC Financial Services Group:
"Paralleling global developments, a decline in oil prices and downward pressure on commodity prices generally is cooling Indian inflation, as are the more favourable base comparisons between late 2014 and the highly inflationary period of late 2013."
"Although Indian industrial production weakened in October, the trend for the economy continues to be stronger; 2014 is on track to be the best year for Indian electricity output growth since 1989."
"Looking to 2015, India should be a big winner from the global decline in energy prices, which will support consumer spending power, dampen inflation, and provide the Reserve Bank of India with room to loosen monetary policy."
"Indian real GDP growth should accelerate above 6.0 per cent in 2015."
Anubhuti Sahay, economist at Standard Chartered Bank, Mumbai:
"The IIP (industrial output) print was much worse than expected, and we last saw such bad prints back in October 2011."
"Some of the negative impact is likely to fade from next month onwards. However muted activity in the industrial sector is unlikely to provide a big push. We expect a rate cut in February 2015."
Shivom Chakrabarti, senior economist at HDFC Bank, New Delhi:
"The IIP (industrial output) was shocking, I think there's probably a one-off factor. Overall, it does highlight the fact that growth is still weak and inflation pressures are falling."
"It does put more pressure on the RBI to cut rates but I think given guidance RBI has provided, it would be prudent for it to wait at least until February and at least until the budget to take a decision."
Copyright @ Thomson Reuters 2014
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