CPI Inflation Cools Marginally in February, Stays Over 6% For Second Straight Month: CareEdge
Cereals and milk keep food inflation elevated.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
CareEdge Research Report
Consumer Price Index inflation cooled only marginally in February to 6.4%, remaining above the Reserve Bank of India’s upper threshold for a second straight month.
The headline inflation print was higher than our expectation (6%). Food inflation continued to be the main driver with its contribution to overall inflation rising to 45%.
Despite the government’s effort to provide additional supplies of wheat in the open market to cool prices, cereals inflation continued in double digits.
Additionally, the strengthening of price pressures in non-food categories such as housing, household goods and services and health kept core inflation elevated at 6.3%.
The persistence of core inflation above 6% is concerning and reinforces the expectation of another round of a 25-basis points rate hike in the upcoming monetary policy meeting.
For rural consumers, inflation fell marginally to 6.7%. Despite the moderation, rural CPI has remained above 6% for the 14th month in a row.
For urban consumers, inflation inched upwards to 6.1% from 6% in January owing to higher food and housing inflation.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.