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Below is perspective on CPI numbers by Ms. Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India.

“ While the CPI inflation for Jan 2022 has touched RBI’s upper tolerance band, the positive aspect is that CPI inflation has fallen on MoM basis. The sequential fall has been possible mainly because of softening of food prices. However, the concerning aspect is that the core inflation has remained above 6%. Going forward, the sharp rise in global crude oil prices and its impact on CPI inflation will be a cause of concern for the RBI . While the Central Bank has given benign inflation projection for FY23, it will be critical to watch what happens to commodity prices and specifically global crude oil prices in the next few months”.

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