Inflation in India fell down
from 5.37 percent in February to 5.17 percent in March. The data contradicted
with economists forecast that the consumer price would rise in March to 5.5
percent. Moreover, the food inflation lightened to 6.14 percent compared with
February upward 6.88 percent. However, this falling down of food inflation is
still below the RBI target that is 6 percent in year-end.
Looking at the data, economists
believe that it is a sign of better progress in India economic growth. The
India’s central bank has cut the interest rate twice this year and the third
may be done outside the schedule system this year. For now, the key rate is 7.5
percent.
The down of inflation could not
be separated with a good weather that provides more controllable harvest, the
dip in global oil price, and the climbing of Indian stocks. The factory
production rose at the fastest pace in three months at February. The industrial
rising reached 5 percent in February exceeded the 33 analyst in Bloomberg
survey estimation that the rising would reach 3.3 percent.
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Some factors helped Indian
market developed in fast pace. They are delaying in interest rate hike in the
US, China stimulus, India better investment destination, and upgrading of credit
outlook by Moody’s.