CPI Inflation increased to 2.92% in April compared to 2.86% in March. The overall inflation rate is expected to be benign in the next 12-18 months and provides room for the rate cut, although the core inflation has been higher than 5% in recent months. There are also risks arising from the US sanctions on Iran impacting the oil prices. On industrial output, while the growth has decelerated, the capacity utilization is at the highest level. Therefore, increase in output growth will critically depend on new investments.