ANZ analysts note that India’s headline CPI rose to a 14-month high in September, sharper than even our non-conservative estimate.
Key Quotes
“The increase was driven by higher food inflation, while core inflation moderated for the second straight month.”
“Despite coming close to the mid-point of the Reserve Bank of India’s (RBI) target range of 4%, we believe policy action and favourable monsoons will cap the upside to further increase in vegetable prices.”
“Today’s uptick will therefore be short-lived, which reinforces our call for the RBI to ease policy rates by 25bps at its policy meeting in December.”
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