Data Preview: Nirmal Bang's Forecast For February CPI, WPI, January IIP And Q3 FY23 Current Account Deficit

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.We expect consumer price index inflation to come in at 6.15% in Feb-23, moderating from 6.52% in Jan-23. CPI – food and beverage inflation is seen at 5.82% in Feb-23 versus 6.2% in Jan-23. While cereal prices continued to witness some uptick, vegetable prices declined on month-on-month basis.Core CPI inflation is also expected to moderate marginally to 5.9% in Feb-23 from 6.1% in Jan-23. With CPI inflation remaining above the Reserve Bank of India’s upper tolerance band of 6%, we see high probability of an additional 25 basis points rate hike at the April Monetary Policy Committee meeting. The Wholesale Price Index inflation is likely to come in at 3.4% in Feb-23, down from 4.73% in Jan-23. WPI food articles inflation is seen at 3.3% in Feb-23, up from 2.4% in Jan-23 on a low base. Meanwhile, core WPI inflation is likely to moderate to 1.9% in Feb-23 from 3.3% in Jan-23, supported by easing prices of industrial commodities. The Index of Industrial Production likely grew by 4.8% YoY in Jan-23 versus 4.3% in Dec-22. Core infrastructure industries’ output grew by 7.8% YoY in Jan-23 versus 7% in Dec-22. However, the S&P Manufacturing Purchasing Managers' index had moderated to 55.4 in Jan-23 from 57.8 in Dec-22.  We expect the current account deficit to moderate to $20.9 billion or 2.6% of gross domestic product in Q3 FY23, down from $36.4 billion or 4.4% in GDP in Q2 FY23. A lower trade deficit and robust services exports and remittances will aid moderation in CAD..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Data Preview: Nirmal Bang's Forecast For February CPI, WPI, January IIP And Q3 FY23 Current Account Deficit

We expect consumer price index inflation to come in at 6.15% in Feb-23, moderating from 6.52% in Jan-23.

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