The CPI print sets the stage for another rate cut by the RBI in its June policy of 25 bps, they said.
The country's headline retail inflation rate edged down to 6.44 percent in February from a three-month high of 6.52 percent recorded in January
India's headline retail inflation rate was at 6.44 percent in February, which is lower than January's three-month high of 6.52 percent but above the RBI’s medium-term target of 4 percent
The US economy added strong non-farm payroll data; almost 517,000 jobs were added in January far ahead of the Street’s expectations of 193,000 jobs.
In the December policy review, the RBI governor Shaktikanta Das too had warned about core inflation saying it has remained sticky and elevated.
The RBI releases a working paper titled ‘Tail Risks of Inflation in India’
The central bank is currently running pilots to test larger roll out of CBDC
Upside risks to inflation could emanate from rising Covid cases in China, and if cases in India rise as well, that could again disrupt supply chains.
At the beginning of the year, the RBI made comforting noises that inflation wasn’t a big worry. But then it got spooked.
The yield on the 10-year benchmark government bond should hover around the 7.25-7.50 percent mark and may ease below this range as most negatives are already factored in
The investment bank MD expects core inflation to remain above 6 percent primarily due to supply-side constraints and rising input costs
Core inflation has climbed and remained above 6 percent for over a year now and it could make the RBI work harder to bring headline retail inflation into the 2-6 percent band even if other factors such as base effect and easing commodity prices drag it down
The general CPI index fell by 0.36 percent in December from the preceding month
Sakshi Batra is in conversation with Gaurav Choudhury, Deputy Executive Editor, Moneycontrol to find out if a lower headline retail inflation number is actually good news.
Reserve Bank of India Governor Urjit Patel, known for calling RBI an “owlâ€, may have turned hawkish on its monetary policy stance towards the year end.
According to a report by Kotak Institutional Equities, with favourable monsoons, there is likely to be a correction in food prices though headline inflation will continue to trend up through the rest of the current fiscal.
Consumer price inflation eased faster than expected to a three-month low of 9.87 percent in December from 11.24 percent in November, driven by a moderation in vegetable prices.
The core inflation rose to 2.1 percent versus 1.9 percent (month on month). Meanwhile, July WPI was revised to 5.85 percent versus 5.79 percent (prov) earlier.
Government data on Monday showed a reading of 6.1 percent, higher than the 5.80 percent rate estimated by analysts in a Reuters poll. Food prices soared 18.18 percent.
India's headline inflation accelerated to 5.79 percent in July, the fastest pace in five months, mainly driven by higher food prices and costlier imports as the rupee fell to a record low, government data showed on Wednesday.
A Reuters poll expects India's headline inflation to ease for the third straight month in April.
Government will continue to argue for lowering of interest rates by Reserve Bank in the backdrop of softening of headline inflation and the need to promote economic growth.
India's headline inflation likely accelerated to an 11-month high in October on costlier fuel and food, a headache for the government in a battle with the central bank over spending and high interest rates ahead of state elections.
India's wholesale price index (WPI) rose a lower-than-expected 7.25% in June from a year earlier, mainly driven by higher food prices, government data showed on Monday.
Sajjid Z Chinoy, economist (Asia) at JPMorgan says the sharp decline in new orders, which are a reliable indicator of the output in the coming months, point to an impending slowdown.