The Reserve Bank of India retained growth and inflation projections at 7.2% and 4.5% respectively for FY 2024-25, citing improved agricultural activity, buoyant services, and positive investment trends, while acknowledging risks from geopolitical tensions and financial market volatility.

Union Minister of Petroleum and Natural Gas Hardeep Singh Puri has criticised the Congress-led Karnataka government for increasing fuel prices. Puri highlighted that the state's decision has burdened residents with an additional Rs 3 per litre for petrol and diesel.

The Reserve Bank of India's April bulletin warned that extreme weather conditions could pose a risk to inflation, along with prolonged geopolitical tensions that could keep crude oil prices volatile.

The data, released by the commerce and industry ministry on Monday sheds light on the country’s economic sphere especially in the wake of global price fluctuations.  The Wholesale Price Index(WPI) based inflation had been in the negative territory from April to October but turned positive in November at 0.26%.

  Concerns loom large over persistent inflation and stringent monetary policies in the world's largest economy. As financial leaders from around the globe convene in Washington for the spring meetings of the International Monetary Fund and World Bank, attention pivots to the outlook for short-term economic fortunes worldwide. 

Headed by RBI Governor Shaktikanta Das, the six-member panel is set to address key concerns, with a predominant focus on inflation control amidst subsiding worries over economic growth. The policy stance, is dubbed as a 'withdrawal of accommodation'.

Rural areas experienced higher inflation compared to urban areas, with Odisha reporting the highest inflation and Delhi the lowest. The Reserve Bank of India aims to keep retail inflation at 4 percent with a 2 percent margin on either side.

State-run oil marketing companies (OMCs) have implemented a fresh round of price hikes for commercial LPG gas cylinders, affecting consumers across major cities in India. Effective from March 1, 2024, the prices of 19 kg commercial LPG cylinders have been increased by ₹25. This surge marks the second consecutive month of price hikes, following a similar increase in February.

"As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far," the governor said, as per the minutes. He argued that price and financial stability were essential to sustain a long haul of high growth, and the monetary policy's objective was to stay focused on achieving the 4 per cent inflation target on a durable basis, keeping in mind the objective of growth.

"Of-course in the last year and a half, post Ukraine-crisis, interest rates have again gone up by 250 basis points. But now that inflation is pretty much in control, I suspect we will soon see the reversal of the rate hikes starting in India, whether it happens in the next or the second monetary policy from now. I think it's only a matter of time," Goyal said.

According to the Goldman Sachs research report the target is to maintain that the RBI MPC will keep the policy rate unchanged at 6.50 percent as discussed in the February 8 policy meeting.

In other parts of the world, inflation expectations dipped in Europe, contrasting with an increase in retail sales and consumer sentiment in the United States. Charts displayed on Bloomberg this week highlight the diverse trends in the global economy.