Perspective on CPI IIP Data By Nish Bhatt, Millwood Kane International
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Below is perspective on CPI IIP Data By Mr. Nish Bhatt, Founder & CEO, Millwood Kane International
After staying above the 6% mark for two months, the CPI inflation for the month of July cooled off to below 6% which is a 3-month low level. The CPI inflation is down mainly due to softness in food, vegetables, pulses, and ease in the supply chain which was affecting prices. The July inflation at 5.59% is still below the RBI estimate of around 5.7% for FY22. The central would like the CPI inflation data to soften further though the current focus is supporting growth at any cost.
The June IIP data at 13.6% is mainly on account of ease in lockdowns, favorable base. The Industrial production data is expected to improve further as the vaccination drive covers a larger part of the population, Capex cycle picking up.
A fall in inflation and recovery in IIP will help the central bank to continue with its Accommodative and easy monetary policy till growth picks up completely.”
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