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Analysts at TD Securities are expecting India’s headline CPI to move higher in Feb to 2.42% after CPI fell to a 19 month low of 2.05% y/y in January, near the bottom end of the RBI’s 2-6% inflation target.

Key Quotes

“Core inflation is likely to edge lower, however. Fuel and food prices have been the main dampening forces on inflation over recent months.”

“Food prices have dropped for 5 consecutive months but we expect the pace of decline to slow in Feb. Similarly fuel prices are likely to exert less of a negative influence.”