Inflation based on wholesale prices dropped marginally in April to 9.6 per cent from 9.9 per cent in the previous month, but worries remain as food inflation stays firm at 16.9 per cent.
After Friday’s data release, all eyes are on the Reserve Bank of India (RBI), which had hiked its key interest policy rates in March and April as it had begun withdrawing monetary stimulus measures announced to counter the global downturn.
Chief statistician Pronab Sen said inflation could cool down further in coming months.
“Inflation is more or less on expected lines. Fear of inflation spreading from food to other sectors is still there. It will take a little bit of more time for it to come down. I hope inflation would be on declining trend hereafter,” Sen said.
“The ongoing nervousness from the European debt fallout may prevent the RBI from immediately announcing any monetary measures,” said Rajeev Malik of Macquarie Securities.