MUMBAI, Feb 20 Reuters Inflation expectations in India may stabilise and edge down going ahead but renewed pressures from cereals and proteins cannot be ruled out, the Reserve Bank of India said in its February bulletin published on Tuesday.

The country39;s retail inflation eased to a threemonth low of 5.1 in January, from 5.69 in December and 5.55 in November.

Overall inflation developments are turning favourable, providing a stable environment for corporates to plan expansion strategies in anticipation of a pickup in demand, the RBI wrote in its regular article titled 39;State of the Economy39;.

Core inflation is at its lowest since October 2019 and nonfood wholesale price inflation remains in deflation. This should augur well for the input cost outlook and selling prices of manufacturing firms.

The RBI said evolving conditions are turning favourable on the agriculture front as well for the next financial year.

The likelihood of the global economy exhibiting strongerthanexpected growth in 2024 has brightened in recent months, with risks broadly balanced, the central bank said.

The Indian economy continues to sustain the momentum achieved in the first half of 202324, going by highfrequency indicators. Expectations of a fresh round of capex by the corporate sector are likely to fuel the next leg of growth.

In a separate article, the RBI said internal simulations showed that the government39;s debttoGDP ratio would swerve below the projected path set out by the…