Tanvee Gupta Jain, economist, UBS Securities, said that consumer inflation has moderated from previous highs, although upside risks to inflation clearly persist. “We expect the MPC to opt for a pause in the June 2017 policy review. The year-on-year CPI-based inflation eased sharply to a series-low three per cent in April 2017, led by food inflation. The trajectory for food inflation is expected to be relatively benign in the first half of FY18. However, a reversal of base effects could result in food inflation rising sharply to four-five per cent during second half of 2016-17.

Source: Indian Express June 04, 2017 23:15 UTC