New Delhi: Government data on Tuesday showed that Consumer inflation stood at a provisional 2.57 per cent in February. As per an official statement Consumer inflation for January was revised downwards to 1.97 per cent, also its lowest level in 19 months, from 2.05 per cent. A poll by Reuters economists had predicted consumer price index at 2.43 per cent for February.
In February, Reserve Bank of India (RBI) reduced the repo rate by 0.25 per cent or 25 basis points. The central bank also changed its policy stance from ‘calibrated tightening’ to ‘neutral’. The repo rate - which is the key interest rate at which the RBI loans short-term funds to commercial banks - right now stands at 6.25 per cent.
The RBI has kept up a medium-term objective of 4 per cent for customer inflation, which it tracks essentially to define its policy. Customer inflation - decided by Consumer Price Index (CPI) - shows the rate of increase in consumer prices.
India's industrial output in January rose 1.7 percent from last year; lower than forecast, government data showed on Tuesday. A growth of 2.0 per cent for January was predicted by a Reuters poll of economists.
January's growth has been slower than the re-examined 2.6 percent year-on-year increase in December, the data showed.