IGI Logo

Below the Perspective on CPI Data by Mr Nish Bhatt, Founder & CEO, Millwood Kane International

The December retail inflation is just the right development the market was watching for. Retail inflation stood at 5.22% YoY vs. the consensus estimate of 5.30%, a four-month low level. Core inflation at 3.6% indicates the softening of the inflation prints as we advance. A slight cause of worry is food inflation at 8.39%, which looks largely transient.

Food items and rising crude prices are major concerns and risk factors for inflation going forward. A consistent and durable softening of inflation is key to the RBI's stance on interest rates. We expect the rate easing cycle to begin as early as next month, with around 50-75 bps rate cuts by the RBI in CY25, provided domestic, global macros, and geopolitical situations are under control. The policies of the incoming US administration will be critical for major policies and markets in CY25.

Above views are of the author and not of the website kindly read disclaimer