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Below is quote on Inflation by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

“The December headline inflation came in softer than expectations largely led by food inflation. The overall falling sequential momentum on food prices is further expected to continue in January as well but the sticky core inflation and adverse base effect poses risk of the next reading being higher than 6%. Overall, as global financial markets are tightening and inflation remains a worry we expect the RBI to also take more aggressive measures in the months ahead. While spread of Omicron risks postponing the decision, we continue to believe 40bps of reverse repo rate hikewill happen between the February to April policy”.

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