Inflation expected to average 4.5 percent in current fiscal: CRISIL


New Delhi:

Leading rating and economic research firm Crisil has projected inflation to average 4.5 per cent in the current fiscal year 2024-25, “Given normal monsoon conditions, we expect food inflation to remain moderate, while non-food inflation may pick up. . It is expected to remain soft due to softening commodity prices.

Consumer Price Index (CPI) inflation eased marginally to 4.75 percent in May from 4.8 percent in April 2024, the rating company said.

“While non-food categories have moderated core inflation, a concern is the continued increase in food grains and pulses,” the CRISIL report said.

Urban economy can be controlled by strict credit conditions

Crisil said the urban economy could be controlled by tighter credit conditions. Bank retail credit growth has slowed in recent months, while regulatory measures to limit bank lending to NBFCs will also affect consumer loans.

“Although government capital expenditure is good, it is expected to be lower than last year due to fiscal consolidation,” the report said.

The GDP growth rate will drop to 6.8 percent in this financial year

It said slower global growth could hamper growth in merchandise exports, which would drag down gross domestic product (GDP) growth to 6.8 percent this fiscal from 8.2 percent last year.


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