Indian IPC will decrease to 2.82% in May

Indian inflation in India mitigated in May as expected, 2.82%, the Ministry of Statistics and implementation of the country’s program reports on Thursday.

According to February 2019, last year inflation came to the average Reuters survey last year and reached the lowest level since February 2019, according to LSEG. Print rose 3.16% in April.

Food inflation, key metric, reached 0.99% in May, which is sharply below 1.78%. In April, vegetable inflation decreased by 13.7%, in May the price increase increased by 4.77%.

India’s reserve bank softened the monetary policy against the background of weakening inflation. Most recently the bank reduced its benchmark by 50 basic points to 5.50%, The level of invisible since August 2022.

The move emphasized the shift of politicians to strengthen economic growth, and the IRB is now reduced interest rates for three consecutive meetings since February.

RBI governor Sanji Malhotra attributed the last incision to inflation mitigation, and the growth that was “lower than our aspirations among the complex global environment and increased uncertainty.”

Economists Nomura Economist Purpose 3.7% RBIReferring to the softened prices for goods against the backdrop of weakened economic activity and the influx of cheap Chinese goods to the market.

The investment bank expects two additional cuts of 25 basic points in October and December, taking a terminal rate of up to 5%.

India’s economy has expanded to more quickly than expected An annual rate of 7.4% in the quarter ended with MarchHigher than 6.7% of economists’ growth in Reuters.

For the full financial year 2025, the economy expanded by 6.5%According to the government’s estimates. In the IRB is supported its growth projection For the current fiscal year, which ends in March 2026, by 6.5%.

Faced with the potential tariff for 26% on its goods, India is negotiating with the US, seeking to ensure a transaction for July.

Indian and American trade participants were close to signing “intermediate” A bilateral trade transaction, Reuters reports earlier this week. According to Reuters, the initial agreement is likely to focus around the market for industrial and some agricultural goods, reducing tariffs and other unproven barriers.

. Ruxandra iordache cnbc introduced to this report