Wholesale Inflation Expectedly Dipped To 3.9% In Feb; Likely To Ease Further In March On A High Base: ICRA

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. .ICRA Research Report.As expected, the Wholesale Price Index inflation witnessed a broad-based moderation to 3.9% in YoY terms in February 2023 (our expectation: up 4.0%) from 4.7% in January 2023. Subsequently, there has been a sequential softening in global commodity prices in the ongoing month, which along a high base for the core index (March 2022: up 11.3%) related to the escalation of the Russia-Ukraine conflict, and the resultant surge in commodity prices, are likely to further soften the core-WPI inflation in March 2023. Moreover, the U.S. dollar/Indian rupee pair has mildly appreciated in sequential terms in March 2023 so far on the back of foreign portfolio investment-equity inflows, as well as weaker DXY, which would ease the landed cost of imported goods, relative to the prior month. Amid a mixed trend in the wholesale prices of essential commodities in the early part of the month, the WPI inflation is anticipated to soften to ~2% in March 2023.Thereafter, it could slip into deflation during some months of Q1 FY24 on the high base related to the surge in global commodity prices in the year-ago period, even as the outlook for food inflation over the next few quarters is clouded by emerging risks such as a potential heatwave and the development of El Nino conditions..Click on the attachment to read the full report:.CPI Inflation Cools Marginally in February, Stays Over 6% For Second Straight Month: CareEdge.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.

Wholesale Inflation Expectedly Dipped To 3.9% In Feb; Likely To Ease Further In March On A High Base: ICRA

Core inflation eased for the tenth consecutive month in February 2023.

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