Perspective on CPI Data By Mr. Nish Bhatt, Millwood Kane International
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Below is Perspective on CPI Data By Mr. Nish Bhatt, Founder & CEO, Millwood Kane International
“ After some signs of cooling off in the past few months, the CPI inflation for the month of May stood at a 6 month high, much higher than the mandated target range of 4-6% for the RBI. Food inflation above the 5% mark, edible oil, and pulses have led to relatively high inflation. This has led to the core inflation shooting up to 6.6%. The high inflation is despite renewed lockdown in the month of May and looks largely a supply-side issue. High & sticky inflation is a cause of worry, despite the low industrial capacity utilization.
Going forward the unlock measures announced by the states, a good monsoon year will help keep the food inflation in check. Though the RBI has stated that its focus will be on growth, a consistently high inflation print will be a cause of concern.”
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