India's CPI Inflation At 10-Month Low In March, Industrial Output At Four-Month High In Feb: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Headline Consumer price index inflation eased to a 10-month low of 4.9% YoY in March 2024 versus 5.1% in February 2024, mainly led by a contraction in prices of fuel and light components (all-time low of -3.2% in March-24 versus -0.8% in Feb-24) and lower core inflation, which was partly offset by high food inflation. This implies that inflation stood at 5.4% in FY24, the lowest in four years. The inflation number was in line with our expectation and Bloomberg consensus of 4.9%. Food inflation came in at 8.5% YoY in March-24 versus 8.6% in Feb-24. Details suggest that high food inflation was mainly driven by prices of cereals, which rose to a three-month high of 8.4% in March-24 versus 7.7% in Feb-24. At the same time, prices of vegetables (6% weight) and protein-based items (eggs, meat and fish) also remained firm. Inflation in meat and fish (3.6% weight) came in at a 21-month high of 6.4% in March-24 (versus 5.2% in Feb-24). Additionally, inflation in pulses continued to be sticky in double digits. On the other hand, inflation in spices came down to a 21-month low of 11.4% in March-24 from its peak of 23.1% in Aug-23 and 13.5% in Feb-24. Standard core inflation (excluding food & energy) remained unchanged at 3.5% YoY in March-24 (versus 3.5% in Feb-24).Notably, the prices of fuel and light items contracted 3.2% YoY in March-24 versus a contraction of 0.8% in Feb-24..Index of Industrial Production growth accelerated to 5.7% YoY in Feb-24 (versus 4.1% in January 2024), highest in four months. The acceleration in growth was broad-based. The number was slightly lower than the Bloomberg consensus of 6% and better than our forecast of 5.2%. The main driver of the better-than-expected industrial output growth was the mining sector, which grew 8% YoY in Feb-24. However, production was weaker than expected in the capital goods and consumer non-durable sectors, while it was better in the construction and consumer durable sectors. During Apr-Feb-24, industrial output grew 6%..Click on the attachment to read the full report:.India's CPI Inflation Eases To 10-Month Low At 4.85% In March, Fuel Prices Lead The Fall.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India's CPI Inflation At 10-Month Low In March, Industrial Output At Four-Month High In Feb: Motilal Oswal

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