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India’s inflation ‘uncomfortably high’: Moody’s Analytics

India’s inflation ‘uncomfortably high’: Moody’s Analytics

Higher fuel prices will keep upward pressure on retail inflation and keep the RBI from offering further rate cuts, said Moody’s Analytics, a financial intelligence company.

India’s inflation is at “uncomfortably high” level, which is an exception among Asian economies, Moody’s Analytics said on Tuesday.Higher fuel prices will keep upward pressure on retail inflation and keep the RBI from offering further rate cuts, said Moody’s Analytics, a financial intelligence company.

Retail inflation rose to 5 percent in February, from 4.1 percent in January. The Reserve Bank mainly takes into account retail inflation while deciding on the monetary policy.

Core inflation (which excludes food, fuel and light) was up 5.6 percent in February, from 5.3 percent in January, Moody’s Analytics said, adding India’s inflation is “uncomfortably high”.

In its macro roundup, Moody’s Analytics said inflation is subdued in most of Asia, and expected to only gradually pick up over 2021 because of rising oil prices and economies starting to reopen.

Brent crude has climbed 26 percent this year at around USD 64 per barrel. It was around USD 30 per barrel in March 2020, when the COVID-19 crisis was near its peak.

News Source:- Money Control

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