Consumer Price Index (CPI) eased from 6.77% in October 2022 to 5.88% in November 2022 Says Vivek Goel, Tailwind Financial Services
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Below are Views on CPI data by Vivek Goel, Co-founder and Joint Managing Director, Tailwind Financial Services Limited
Consumer Price Index (CPI) eased from 6.77% in October 2022 to 5.88% in November 2022. This is the first time after 10 months of consecutive reading all RBI targets and is below market estimates. This is on the back of lower food inflation as it fell to 5.07% as against 7.01% in previous month.
While moderation in headline index is positive, sticky core inflation at 6.28% remains a concern which RBI also discussed in their policy announcement this month. Further, IIP contracted to 4% in October indicating lower factory output. It will have to be seen how RBI's future policy actions take into account these factors in their effort to curb inflation durably while maintaining growth.
With the Fed's policy announcement due soon, it will be interesting to see whether they echo a similar reduction in rate hike as done by RBI and help support markets amidst global growth concerns.
We believe that even though headline inflation has come off, core inflation continues to remain sticky and it will be an important input for the future course of monetary policy.
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