Average inflation this year could be closer to 4.5%: SBI

Soumya Kanti Ghosh Chief Economic Advisor of SBI said that their projections were a clear 20 basis points down the September inflation rate.

The numbers are purely because of personal care and inflation has oderated. There is a bit of impact of gold, he said, adding that is the why the core CPI has moved up. We can’t get a better number than this, he said.

He believes the average inflation number this year could be closer to 4.5 percent which undershoots RBI’s 4 percent target.

Indranil Pan Chief Economist of IDFC Bank said that the they had estimated inflation to be 4.4 percent. It is on trajectory, he said. “We had factored in lower vegetables and pulses. In November and December, we expect inflation to hug 4 percent levels."Watch video for more....