Quote on CPI Data by Mr. Vivek Rathi, National Director Research, Knight Frank India
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Below the Quote on CPI Data by Mr. Vivek Rathi, National Director Research, Knight Frank India
“Consumer headline inflation in Dec’24 remained sticky albeit a slight moderation of 5.2%, a lowest print in the last four months. On a sequential basis, CPI contracted by 0.6%, with a significant month-on month contraction of 1.2% in the food prices. Some respite in inflationary pressure in the coming months is possible especially the food prices provided a healthy rabi season. Barring food prices, the core inflation as well remained sticky at 3.6%. Going forward, uncertainty around the seasonal impact of the food prices along with import inflation arising from depreciating rupee may add to price pressures for the consumers.
In terms of policy stance, due to the combination of sticky inflation and subdued GDP estimate of 6.4% for FY 2024-25, the RBI is likely to hint at a rate cut in the next two policy meeting. This should aid consumption capacity of the households, especially of the lower income groups.”
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