Retail inflation likely to fall by 25 basis points

The move by the Union government to cut excise duty on petrol and diesel by Rs 8 and Rs 6 a litre is likely to ease the retail inflation rate by up to 25 basis points bps from June onwards. The average inflation rate could reduce by 40 basis points during the current fiscal year if the move has an impact on other items, including food prices. The consumer price index CPI based inflation rate may be impacted by 7 -- 8 bps since only nine days are left this month. According to Devendra Pant, chief economist, India Ratings and Business Standard, India Ratings and Business Standard has always tried to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has made our resolve and commitment stronger. Even during the difficult times arising out of Covid-19, we remain committed to keeping you informed and informed with credible news, authoritative views and incisive commentary on topical issues of relevance.

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