Reaction Quote on CPI data By Shlok Srivastav, Co-founder & COO, Appreciate, a SEBI and IFSCA registered fintech company
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Below The Reaction Quote on CPI data By Shlok Srivastav, Co-founder & COO, Appreciate, a SEBI and IFSCA registered fintech company.
“The headline inflation number at 4.83% masks the rather ominous food inflation figure of 7.9%. Undoubtedly, the new government will draw relief from the expectation of a normal monsoon. However, erratic behaviour from the monsoon threatens to send food inflation soaring even higher, which would dampen consumption going forward, and dent the already fragile recovery seen in rural consumption levels.
Conspicuous in the food inflation numbers is the surge in prices of vegetables and pulses. Both categories have surged by 28% and 17% respectively compared to April last year. Price inflation in meat & fish and cereals also makes for a worrisome imprint at 8.17% and 8.63%.
There is a semblance of hope to be drawn from the RBI Consumer Confidence Index and CMIE’s consumer sentiment survey. The RBI’s survey is operating above the pre-pandemic levels for the first time since the onset of Covid-19. CMIE’s survey will also boost market confidence further: It indicates that there has been a jump in rural consumption sentiment in the second half of FY24 which surpassed urban areas. Markets are counting on the rural consumption trend to strengthen further, and for the monsoon to not play truant.”
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