Logo
Govt of India
Logo
bg
bg
bg

 

Lower inflation, dip in factory output raise rate cut hopes

13 Sep 2016

untitled-11-copyNEW DELHI: Retail inflation slowed to a five-month low in August as food prices softened, while industrial output contracted in July, raising expectations of a cut in interest rates when the Reserve Bank of India (RBI) meets early next month to review monetary policy. Data released by the Central Statistics Office (CSO) on Monday showed inflation, measured by the consumer price index (CPI), rose 5.1% — slower than the previous month's 6.1% rise. Retail food price eased to 5.9% in August, slower than the previous month's 8.4% increase. Rural inflation slowed to 5.9% in August from 6.7% in July, while urban inflation moderated to 4.2% from 5.4%. Food inflation slowed sharply in both rural and urban areas. The sharp rise in retail inflation in the past few months, fuelled by increase in food prices, had dashed hopes of any cut in interest rates. But robust monsoon rains may have helped in dousing food prices. Vegetables prices eased in August, while prices of cereals, meat and fish softened. Prices of pulses, sugar and confectionary remained pressure points and ruled at double digits. Economists said they expect the central bank to act on rates. "After RBI kept its policy rate unchanged at 6.5% at the August 9 meeting, this increases chances of a rate cut in October," ratings agency Crisil said in a note. "But RBI may wait for some more time before wielding the knife. We expect the average CPI to stay close to 5% this fiscal, assuming a favourable monsoon with adequate temporal and spatial distribution," the agency said. Separate data released by the CSO raised worries about the health of the industrial sector. Industrial output contracted by 2.4% in July led by a decline in manufacturing and capital goods and sluggish output in mining and electricity. The manufacturing sector fell 3.4% in July compared with growth of 4.8% in the same month last year, while the capital goods sector contracted 29.6% compared with growth of 10.1% in July 2015. Economists have raised doubts about the signalling ability of the data as it has remained volatile. "Although lead indicators had pointed to a slowdown in industrial growth, the contraction posted by IIP in July 2016 has come as a surprise, with the performance of manufacturing gloomier than anticipated. However, the steady 5.5-6% growth recorded by consumer durables in the last three months is a source of some comfort," said Aditi Nayar, senior economist at ratings agency ICRA.

By SanjayBansal | Founder & CEO | Affordable Homes India

Lotus Homz sec 111

Discuss on this Topic

Lotus Homz sec 111

Latest Real Estate News


The Financial Express: Co-living the next real estate goldmine, market potential worth $93 billion: Study. 14 Feb 2019
What co-working is doing to business centres through collaborative and flexible work environment, co-living aims to do to PGs and hostels for stude Read More
Indiabulls Real Estate buys 140 acre land in Gurugram 01 Nov 2018
Indiabulls Real Estate recently reported a 23 per cent increase in its consolidated net profit at Rs 75.91 crore for the quarter ended September 30 Read More
Warehousing brings cheer to Gurugram’s real estate sector 11 Sep 2018
The warehousing segment may lack the charisma that a posh residential property may boast of but currently it is driving the real estate market in r Read More
Transfer EWS homes to housing board, builders told 11 Sep 2018
GURUGRAM: The state government has directed all developers to transfer their inventory of EWS houses to the state housing board in a bid to make th Read More
Realtors in Delhi may sell dreams on land they don't have 09 Sep 2018
Now that the policy is official, real estate experts worry that more builders may try their luck at shortchanging potential buyers and offering the Read More
Apathy floors affordable home aspirants 24 Jul 2018
While the sound bites on affordable homes is through the roof, things have not got off the floor Many Indians face untold hardships due to lack Read More
Final hurdle on Dwarka e-way off, to be ready by March 2018 13 Jan 2017
New Delhi: The Northern Peripheral Road, the 24-km long 8-laned expressway awaiting completion since 2012, seems to be finally on the home stretch Read More

Trending News


India may go up in ease of doing biz :GST 29 Sep 2016
NEW DELHI : With India enhancing its rankings in WEF's Competitiveness Index, the government on Wednesday expected to move up the World Bank's Ease of Read More
Golden Gate properties enters in affordable housing market 04 Jun 2015
Bangalore Based Golden Gate Properties affordable housing venture, Commune Properties India plan to build over 7000 apartments across tier I & Read More
Haryana govt moots new 4-lane-road to link Delhi, Dwarka e-way 12 Sep 2016
GURGAON: Land acquisition for the Delhi part of Dwarka expressway may have recently begun, however the Haryana government — which has almost finished Read More
Lotus Group Launching Affordable Housing On Dwarka Expressway 14 Sep 2016
Lotus Group Launching Affordable Housing On Dwarka Expressway   Undoubtedly, Gurgaon has been one of the hottest property destinations in Delhi Read More
Iconic Gole Market in Delhi to finally get a facelift by 2017 06 Sep 2016
NEW DELHI: The Iconic Gole Market in Delhi to finally get a facelift by 2017. The New Delhi Municipal Council (NDMC) has given its nod to a rebuilding Read More
Major boost to affordable housing in Delhi 01 Jun 2015
Affordable housing in the capital city of Delhi could get a major boost with the centre notifying norms for the land pooling policy, a decision welcom Read More
Sector 79 Gurgaon Real estate analysis 21 Apr 2016
Sector 79 is located in NH8 (National Highway). It is also close to the upcoming KMP expressway and also a road connected to Sohna Road. Map of Secto Read More

Zara Rossa

Shree Vardhman Green Court

Pareena Laxmi Sec 99

Lotus Homz Affordable Housing

Value Added Services

 

Government Housing Scheme

 

Banking

  • Prime Minister Awas Yojana
  • Prime Minister Awas Yojana ( Gramin )
  • Samajwadi Awas Yojana
  • Deen Dayal Jan Awas Yojana
  • Mukhya Mantri Awas Yojna Rajasthan
  • Affordable Housing Policy 2013
  • Smart Cities Mission
  • DDA Land Pooling Policy 2018

Banking Partners

 

HDFC

  • Corporation Bank
  • HDFC
  • IDBI Bank
  • LIC Housing Finance
  • Oriential Bank of Commerce
  • Reliance Home Finance
  • Bank of Baroda
  • SBI Home Loan
  • ICICI Bank Home Loan
  • India Bulls Home Loan
  • Axis Bank
  • PNB Housing Finance