August Probably Saw An Increase In Inflation To 6.9 Percent: Deutsche Bank
The CPI inflation figures for India will be revealed next Monday
According to Deutsche Bank, India’s consumer price index (CPI) rose 6.9percent year on year in August, while core inflation was likely around 6 percent.
The CPI inflation figures for India will be revealed next Monday.
While Brent crude oil prices have fallen sharply in recent weeks, the positive impact on the CPI will be muted since fuel items account for a very minor weight, according to Deutsche Bank.
Meanwhile, the dangers to food inflation remain, with negative seasonality coming in from September to November, according to the bank.
Deutsche Bank’s head economist for India and South Asia, Kaushik Das said that the Key vegetables tend to go up during this season.
Aside from seasonality, Das noted that pulse seeding has decreased by 5% year on year.
He further added that these might be possible risk factors that keep food inflation momentum high, resulting in an elevated CPI closer to 7 percent.
According to Das, the Reserve Bank of India (RBI) will continue to raise interest rates, potentially by 75 to 85 basis points in the remainder of this fiscal year.