Higher inflation was driven by vegetable prices, which rose 7.5% over last year. Going forward, higher crude oil prices are likely to spike up inflation for the remaining part of this fiscal. Price pressures are likely to strengthen due to an unseasonal rise in vegetable prices, higher oil prices and a gradual cyclical recovery. As Morgan Stanley said in a recent note, there is not enough comfort for it to cut rates in December. Apart from the likely spurt in oil prices, the green shoots showing an uptick in the economy growth will also go against further monetary easing.

Source: dna November 14, 2017 02:37 UTC