The All-India Consumer Price Index Number for Agricultural Labourers and Rural Labourers for the month of October 2022 increased by 10 points and 9 points to stand at 1159 points and 1170 points, respectively.
It is very unlikely that the lower October inflation number will be seen as a big positive by the MPC members when it meets in December. It is too early for the MPC to think about lowering the guard on inflation after failing to meet its mandate
Leif Eskesen, chief economist for India and ASEAN at HSBC feels it is premature to talk about a cut in rate by Reserve Bank of India (RBI). Moreover, he expects the October inflation to be at 9.7%. He indicated that the overall credit growth has signs of slowdown and slowdown in exports will remain a concern.
A Prasanna, chief economist, I-Sec PD joins CNBC-TV18 to give his preview to inflation and GDP growth. He says that he does not see growth slipping below 7% and expects GDP between 7% and 7.5% for FY12.