The base will remain unfavourable in January, too, and CPI inflation will go past 6 percent, the upper bound of the RBI's inflation mandate.
At 5.59 percent, headline retail inflation is 68 basis points higher than it was in November 2021. Core inflation, however, was unchanged at 6.1 percent.
The 0.2 percent growth in September 2020 is on top of a contraction of 4.6 percent in September 2019
India's export performance has been dismal.
The healthcare sector is facing many US Food and Drug Administration (FDA) hurdles. This is only a temporary turmoil, he says. The big Pharma names from India have huge opportunities in the US as the demand for generic drugs from India steadily rises.
Wholesale inflation, as measured by the wholesale price index (WPI), remained in the negative territory for the 14th straight month but the intensity of the contraction eased, with December WPI coming in at -0.73 percent YoY, versus -1.99 percent.
The base effect is playing a major role here considering CPI had come in at around 7 percent in August 2014, while core CPI was at 6 percent, food inflation was at 8.6 percent and vegetable inflation was at 10.8 percent.
Anubhuti Sahay, Senior Economist-Global Research, Standard Chartered expects the CPI to come in at 5.5 percent on the old base. She spoke to CNBC-TV18 on the factors that will come into play in January consumer price index (CPI) data today.
Wholesale price index for the month of December rose a mild 0.11 percent year-on-year, compared to 0 percent in November. A CNBC-TV18 poll saw WPI at 0.3 percent.
A CNBC-TV18 poll had estimated WPI to come in at 3.1 percent on a lower primary and fuel inflation.
The RBI has set a target of bringing inflation down to 8 percent by January 2015 and 6 percent by January 2016, but Governor Raghuram Rajan has admitted to upside risks on the latter target.
Leif Eskesen, HSBC Global Research says both WPI and CPI will be broadly in line with the previous months - above 10 percent for CPI, still above 7 percent for WPI
Executive vice chairman R Seshasayee, Ashok Leyland equals India's current mood to being in a twilight zone. He says the country's economics is held back by politics which is confusing and murky.
CNBC-TV18's Latha Venkatesh reports that wholesale price index (WPI) for the month of May is likely to be around 4.8 percent; close to the 4.89 percent that was recorded for the month of April.
Indranil Pan, chief economist, Kotak Mahindra Bank explains to CNBC-TV that he estimates the IIP to be at 5 percent due to a base effect from October 2011 and expects an upswing in consumption. Pan is however not very optimistic on the investment sentiment on higher interest rates and poor visibility of domestic and overseas demand.
Finance Minister Pranab Mukherjee today said there is inflationary pressure in the economy, even as inflation in the food segment declined marginally.
R Ramakrishnan, ED, Bajaj Electricals, tells CNBC-TV18 that the company’s growth is reliant on India’s GDP. He, however, expects organic growth to be strong, going forward.
The December infrastructure sector growth has come in at 6.6% versus 6.2% year-on year (YoY). The period between April to December, saw the infrastructure sector growing at 5.3% versus 4.7%. The government has also revised the FY10 GDP number to 8%, a 60 bps revision jump from 7.4%.