India: Transitory uptick in inflation – ANZ

Sandeep Kanihama FXStreet Contributor

ANZ analysts note that India’s headline CPI rose to a 14-month high in September, sharper than even our non-conservative estimate.

Key Quotes

“The increase was driven by higher food inflation, while core inflation moderated for the second straight month.”

“Despite coming close to the mid-point of the Reserve Bank of India’s (RBI) target range of 4%, we believe policy action and favourable monsoons will cap the upside to further increase in vegetable prices.”

“Today’s uptick will therefore be short-lived, which reinforces our call for the RBI to ease policy rates by 25bps at its policy meeting in December.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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