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Private consumption back to being driver of domestic demand: RBI Bulletin
(21 Nov 2024, 10:49)

The Reserve Bank of India noted in its November Bulletin that global economic activity remained resilient during the fourth quarter of 2024 amidst fragile confidence and rising protectionism. In India, the slack in speed observed in the second quarter of 2024-25 is behind us as private consumption is back to being the driver of domestic demand with festival spending lighting up real activity in Q3, the central bank stated. Domestic financial markets are seeing corrections with relentless hardening of the US dollar and equities being under pressure from persistent portfolio outflows. The medium-term outlook remains bullish as the innate strength of the macro-fundamentals reasserts itself. Headline CPI inflation rose above the upper tolerance band in October 2024 with a sharp surge in the momentum of food prices along with an increase in core inflation.

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