Economic recovery slow; see June CPI at 5.06%: ICICI Sec

The index of industrial production (IIP) ex-capital goods was more or less stable, says A Prasanna, chief economist at ICICI Securities. IIP for the month of May came in at 2.7 percent, falling from 4.1 percent, led by a sharp fall in capital goods and consumer goods data. He says the economic recovery is very slow.

On June CPI that is expected to be out later in the day on Monday, he expects it to come in at 5.06 percent. According to him, if food inflation continues to be benign, then even if monsoon is below expectation, RBI will take some comfort.

However, Prasanna is not expecting any policy change in August as the RBI has clearly stated its concerns on monsoon.

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