The household consumption is poised to grow faster in the second quarter with easing headline inflation and revival of rural demand, the RBI bulletin stated, on Friday.
The bulletin observed that retail inflation has slowed and remained within the RBI’s target for two consecutive months. This will help boost private consumption, which is already on an upswing, and along with a revival of rural consumption and private investment activity will fuel overall growth.
However, volatility in food prices remains a contingent risk, the bulletin noted.
Even though September saw a flurry of activity as global central banks including the Federal Reserve announced interest rate cuts, the RBI bulletin pointed towards caution in monetary easing as disinflation momentum slows.