Leading foreign brokerage Credit Suisse has said it expects India's retail inflation to fall further to 8.2 per cent in February from 8.8 per cent in the previous month, but warned that core inflation may remain elevated.
The government will release both the consumer price as well as wholesale price-based inflation data later this week.
"We expect CPI inflation to moderate further to 8.2 per cent in February from 8.8 per cent in January, driven by a fall in food price inflation. However, the core inflation is expected to remain elevated," Credit Suisse chief economist Robert Prior-Wandesforde said in a note on Tuesday.
It can be noted that the Urjit Patel committee report by the Reserve Bank of India (RBI) has set an 8 per cent retail inflation reading by January next year and 6 per cent in January 2016.
RBI Governor Raghuram Rajan, who increased lending rates by 0.25 per cent each in three of the past four reviews, has been citing core inflation as a major reason for the overall price index to remain high.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
