India: CPI likely increased by 6.6% in December – TDS

In view of analysts at TD Securities, India’s CPI likely increased by 6.6% YoY in Dec, an acceleration from 5.5% YoY recorded in the previous month.

Key Quotes

“The main culprit is likely to have been food inflation, which likely recorded a double digit increase, even as core inflation remains well behaved, helped by favourable base effects.”

“Although CPI will likely breach the upper end of the RBI’s 2-6% band we expect this to prove temporary as the food supply disruptions should fade in the months ahead. We don’t expect this to stand in the way of further RBI easing.”