Analysts at TD Securities suggest that India’s headline CPI is likely to continue to push higher, rising to around 5.22% YoY in November in our view.
Key Quotes
“CPI rose to a 16-month high of 4.62% y/y in October, above the RBI’s medium term target of 4%. Once again food prices (especially vegetables and pulses) in the wake of unseasonal rains will likely drive the move in inflation in November, even as core CPI remain soft. Such an increase will complicate matters for RBI but we think they will continue to prioritise growth.”
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