New Delhi, Oct 19 (IANS): Inflation has moderated from its July peak, thus bolstering macroeconomic fundamentals and the Indian rupee has been showing low volatility, the RBI has said in its monthly bulletin for October 2023 which released on Thursday.

In an article on the state of economy, the bulletin said that in India, a broad-based gaining of momentum is discernible in high frequency indicators.

"Deleveraging and higher capacity utilisation have enabled capital-heavy industries to gain traction," it added.

In contrast, it noted that global growth appears to have lost pace from the third quarter of 2023, after having quickened in the first half of the year relative to the preceding six months.

This was on the back of weak manufacturing activity and tight financial conditions in advanced economies, even as several emerging market economies posted growth surprises, the article noted.

"Surging yields and soaring crude oil prices have emerged as proximate risks to global growth," it said further.

The article went on to elaborate that "Headline indicators suggest that labour market tightness in advanced economies (AEs) is easing, with weak wage growth adjusted for inflation dampening consumer spending and confidence. In this group of countries, manufacturing activity is either stagnating or contracting and services are moderating from a robust expansion".

Europe's biggest economies ended the third quarter in contraction, according to purchasing managers' indices (PMIs), it said.

"Globally, the modest easing of inflation from historical highs in 2022 has not been enough to recoup real income losses," said the article.