RBI

Mumbai/New Delhi, July 18 (HS). There is good news on the economic front. The second quarter (June-August) of the current financial year 2024-25 has started with a boom in the economy. The demand situation has improved due to increased spending in the rural sector.

The Reserve Bank of India (RBI) has given this information in the monthly bulletin released on Thursday. An article published in the RBI's Monthly Bulletin titled 'State of the Economy' said that global economic activities are strengthening in developed economies and emerging market economies (EMEs). Along with this, global trade in goods and services is gaining momentum. However, the Reserve Bank has clarified that the views expressed in the bulletin are those of the authors, which do not represent the views of the RBI.

According to RBI, the second quarter of the current financial year 2024-25 in India has started with signs of growth in the economy. Improvement in the agricultural scenario and rural expenditure have proved to be the main points in increasing demand. According to the bulletin, after three consecutive months of softness, the inflation rate based on the Consumer Price Index (CPI) has increased in June 2024. The main reason for this is the increase in the prices of vegetables.

It is worth mentioning that due to increase in the prices of vegetables and other food products, the retail inflation rate has increased to a four-month high of 5.08 percent in June. In the previous month of May, the retail inflation rate was 4.8 percent.