CPI data shows higher consumer inflation rates pegged at 7.35% in Dec against 5.54% in Nov

The Consumer Price Index (CPI) data for December 2019 released by the National Statistical Office (NSO) showed the consumer inflation worsened to 7.35% as compared to 5.54% in November. Following the trend, this became the third month in a row to have higher rates of consumer prices. The current consumer inflation rate also defied the Reserve Bank of India's medium-term target of 4%.

RBI changes repo rate

The Reserve Bank of India while making the monetary policies, keeps a track of consumer inflation data. The central bank had reduced the repo rates by 135 basic point to 5.15% in 2019. Anticipating the inflation in the upcoming term, RBI kept the key interest rates on hold in their bi-monthly policy review in December.

Read: Indian Economy registers 4.5% GDP growth rate in Q2; down from 5% in Q1; Full release here

GDP Growth Rate In Q2

In a massive blow to India's economy, India's second-quarter GDP (July-September) numbers stood at 4.5% - the slowest growth in almost seven years, as released by Central Statistics Office. In the first quarter, that is April to June, the GDP numbers were at 5% and the Q2 (2018-2019) stood at 7%.

This development comes in spite of government's various economic moves like the merger of 9 PSU banks into 4, major corporate tax cuts, policy changes in the automobile sector, reduction in tax regulations to boost foreign income, attract investors and increase the consumer demand. The government currently follows the base year of 2011-12.

Read: Centre's advance estimate peg 2019-20 GDP growth at 5%, down from 6.8%; Mfg at 2%

Centre's GDP estimate for 2019-20  

India's real GDP (Gross Domestic Product) growth during the financial year 2019-2020 is expected at 5% as compared to last year's 6.8%, according to first advance estimates released by the Centre on Tuesday. This estimate is in line with the Reserve Bank of India's (RBI) own revised estimate in December.

Read: Now, BJP MP dismisses the relevance of GDP entirely, says 'It's not Ramayana & Mahabharata'

‘Data released by the National Statistical Office (NSO) of the Ministry of Statistics also estimated growth of real GVA (Gross Value Added) in 2019-20 to be 4.9% as against 6.6% in 2018-19. The manufacturing sector is estimated to see a sharp deceleration in growth with just a 2% expansion as against last fiscal's 6.9%. The farming sector is expected to see a marginal slide of 0.1% from the previous year to 2.8%.

(Image Source: PTI)

Read: Here's what Priyanka Vadra had to say on the 4.5% Q2 GDP growth rate