Home India: CPI will remain well above the target band – TDS
FXStreet News

India: CPI will remain well above the target band – TDS

India is scheduled to release some economic data throughout the day. Economists at TD Securities take a look at the CPI figures, while the USD/INR pair trades at 74.24.

Key quotes

“We expect CPI to fall to 7.04% y/y in Feb from 7.59% y/y previously, its highest since May 2014.” 

“Food price inflation, the major culprit explaining the rise in retail inflation, is likely to remain elevated, but is likely to ease from its 11.8% y/y pace recorded in Jan.” 

“CPI is likely to remain well above the RBI’s 2-6% band, which will limit its room for manoeuvre even as governor Das highlighted that the option to ease remains an option to combat the impact of COVID-19.”


FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.