Marginal Dip In CPI Inflation To 6.4% In Feb Raises Likelihood Of Another Rate Hike By MPC In April Meet: ICRA

"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. .ICRA Research Report.In line with our expectations, the headline Consumer Price Index inflation eased only marginally to 6.44% in February 2023 on a YoY basis from the three-month high of 6.52% in January 2023, with upticks in inflation for cereals, milk and fruits, as well as pan, tobacco and intoxicants, and housing nearly offsetting the dips in the other three categories. Based on the early trends in the prices of food items and a high base (March 2022: up 7.0%), the CPI inflation is projected to soften to 5.9-6.0% in March 2023. There was a relatively larger step-up in prices of some services in the post-pandemic period, following the reopening in the economy. However, annual changes in the services segment are likely to be of a smaller quantum going ahead, which may lead to some tempering in the core inflation in FY24. Such factors, along with a higher base, suggest that the CPI inflation will dip to 5.4-5.6% in Q1 FY24. At the same time, there are concerns around the impact of a likely heatwave on the wheat crop and the consequent impact on wheat prices in the near term. This along with the possibility of the occurrence of El Nino around the summer season and its impact on monsoons would play an important role in determining the trajectory of food inflation over the next few quarters. With the CPI inflation printing above the 6% tolerance level in January-February 2023, the Monetary Policy Committee may vote for another rate hike in its April 2023 meeting, although the decision is expected to be non-unanimous based on the minutes of the February 2023 policy review and the anticipated dip in the inflation in Q1 FY24..Click on the attachment to read the full report:.More Research Reports On Feb CPI Inflation.CPI Inflation Cools Marginally in February, Stays Over 6% For Second Straight Month: CareEdgeFebruary CPI Inflation At 6.4% Inline With Expectations: Motilal Oswal.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."

Marginal Dip In CPI Inflation To 6.4% In Feb Raises Likelihood Of Another Rate Hike By MPC In April Meet: ICRA

Core-CPI inflation recorded a mild dip in February 2023.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Marginal Dip In CPI Inflation To 6.4% In Feb Raises Likelihood Of Another Rate Hike By MPC In April Meet: ICRA

Core-CPI inflation recorded a mild dip in February 2023.

Choose a plan

Follow Us

DOWNLOAD THE APP