India's May CPI Inflation At 12-Month Low Of 4.7%: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Headline Consumer Price Index inflation eased to a 12-month low of 4.7% YoY in May 2024 versus 4.8% in April 2024, mainly led by lower core inflation, which came in at an all-time low of 3.1%, and continued contraction in prices of fuel and light components (- 3.8% in May-24 versus -4% in Apr-24). On the other hand, food inflation remained elevated at 8.7% during the month. The inflation number was largely in line with our expectation and Bloomberg consensus of 4.8%. Food inflation came in at 8.7% YoY in May-24, same as in Apr-24. Details suggest that high food inflation was mainly driven by the prices of cereals and pulses, which were almost entirely offset by fall in prices of meat and fish, milk products and spices. Prices of cereals rose to a five-month high of 8.7% in May-24 versus 8.6% in Apr-24. Prices of pulses went up 17.1% in May-24 versus 16.8% in Apr-24. At the same time, prices of fruits and vegetables (6% weight) also remained firm. The prices of vegetables rose 27.3% YoY, following a 27.8% YoY increase in Apr-24. CPI, excluding veggies, came in at a 55-month low of 3.4% in May-24 versus 3.6% in Apr-24. On the other hand, inflation in milk products came in at a 35-month low of 2.6% in May-24 versus 3% in Apr-24. At the same time, inflation in spices came down to a 29-month low of 4.3% in May-24 from its peak of 23.2% in Aug-23 and 7.8% in Apr-24. Standard core inflation (excluding food and energy) came down to 3.2% YoY in May-24 (versus 3.4% in Apr-24, lowest since January 2015).Click on the attachment to read the full report:.India's Retail Inflation Eases To The Lowest In A Year At 4.75% In May.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India's May CPI Inflation At 12-Month Low Of 4.7%: Motilal Oswal

Monetary easing likely to happen in late CY24 or early CY25

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