February CPI Inflation At 6.4% Inline With Expectations: Motilal Oswal

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. .Motilal Oswal Report.Consumer price index inflation stood high at 6.4% YoY in February 2023 compared to 6.1% in Feb-22. Although the Feb-23 inflation print is 10 basis points lower than the Jan-23 level, it is still higher than the Reserve Bank of India’s target upper limit of 6%. The number is exactly in line with our forecast and Bloomberg consensus. Cereals inflation remained very high at 16.7% YoY compared to 16.3% in Jan-23. On the other hand, vegetable inflation came in at -11.6% YoY in Feb-23 versus-11.7% in Jan-23. Consequently, this offset caused food inflation to remain sticky at 6% YoY in Feb-23. Moreover, CPI, excluding vegetables, came in at 7.6% YoY, lower than a 104-month high of 7.8% in Jan-23. Other important observations in the inflation data:Core inflation (housing, clothing and footwear and miscellaneous) came in at 6.3% YoY in Feb-23, similar to previous three months.Standard core CPI (excluding food and energy), however, came in lower at 6.5% YoY in Feb-23 versus 6.6% in Jan-23. While imported inflation (weightage =10%) stood at a three-month low of 6.9% YoY, domestically generated inflation rose to 6.4% YoY in Feb-23 versus 6.2% in Jan-23. CPI in services remained unchanged at 5.1% YoY and that in goods inched down to 6.8% YoY in Feb-23 versus 5.9% in Jan-23. Energy inflation came in at a four month low of 7.8% YoY in Feb-23 versus 8.6% in Jan-23..Click on the attachment to read the full report:.India IIP - Slow Recovery In January Despite Global Headwinds: Anand Rathi.DISCLAIMERThis 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.

February CPI Inflation At 6.4% Inline With Expectations: Motilal Oswal

Another rate hike of 25 bps in April 2023 is a given.

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