Surprising Drop in CPI : Food-Driven Inflation Spurs Optimism for RBI Rate Cuts By Dr Vikas Gupta, OmniScience Capital
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Below the Quote on Equity markets from Dr Vikas Gupta, CEO and Chief Investment Strategist , OmniScience Capital
"The headline CPI figures, at 5.69%, defied consensus expectations by being significantly lower. Primarily driven by food price inflation at 9.53%, a closer examination reveals that CPI excluding food hovers around 3%. This suggests that, apart from food, retail inflation in India is notably subdued. Housing, representing 20% of the urban CPI, remains below 4%, indicating robust inflation control. Despite vegetables being a key contributor to food inflation, this surge is likely transient and expected to normalize soon. Overall, the well-managed inflation numbers offer the Reserve Bank of India (RBI) the confidence to contemplate rate cuts, enabling a focus on forex rate management amid potential global central bank rate reductions"
Above views are of the author and not of the website kindly read disclaimer
