## India's Inflation and Industrial Production in March 2024
Retail inflation in India dipped to 4.85% in March 2024, compared to 5.09% in February.
This decrease brings the inflation rate within the Reserve Bank of India's (RBI) tolerance range of 2-6%.
On a sequential basis, the inflation rate rose to 0.16% in March, compared to a decrease of -0.11% in February.
India's Index of Industrial Production (IIP) grew by 5.7% in February 2024, a four-month high.
This growth was driven by an increase in manufacturing output (5%), mining production (8%), and power output (7.5%).
The IIP grew by 5.9% during April 2023-February 2024, compared to a 5.6% expansion in the year-ago period.
Aditi Nayar, Chief Economist at ICRA, expects food inflation to remain above 7% in April 2024.
Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, believes the RBI will remain cautious until the second half of FY25, with possible easing depending on monsoon performance, crude oil prices, and the timing of the Fed's rate easing cycle.
India's inflation and industrial production figures for March 2024 show positive trends.
However, concerns remain about food price volatility and the potential impact of heatwaves on inflation.
The RBI is expected to maintain a cautious stance on monetary policy in the coming months.