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.
In an interview to CNBC-TV18, Atsi Sheth, Senior Vice President at Moody‘s, said that IIP and CPI numbers are almost in line with the trend. Moody's retains Baa3 with a stable outlook on India.
RBI has made it clear that not only is it looking at headline inflation in the core but also on how the inflation expectations pan out says Indranil Pan Chief Economist, Kotak Mahindra Bank