With food prices coming off the boil in January, India’s headline inflation or consumer price index will ease to below 6% by March, according to Rahul Bajoria, senior economist at Barclays Bank Plc in Mumbai.
Key quote
While onion prices are already falling materially on the back of greater supply, we expect the January print to mark the peak in the consumer price index.
Vegetable prices will likely drive this drop, along with some expected declines in petroleum prices.
The official data released Wednesday showed retail inflation surged to 7.6% in January to hit the highest level since May 2014, mainly due to elevated food and fuel prices.
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