“India’s headline CPI rose to a 40-month high in November. Although the increase was driven by higher food prices, core inflation also picked up for the first time in four months,” note ANZ analysts.
Key quotes
“We expect price pressures to remain elevated till January. Core inflation will also face upside risks from increased telecom tariffs, effective this month.”
“Overall, this dilutes the case for a February rate cut by the Reserve Bank of India (RBI) given their cautiousness on rising inflation.”
“However, we continue to expect the RBI to keep the door open for further easing, given that growth conditions remain weak.”
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