India’s retail inflation eased to 5.07% in January, offering some respite to policymakers and bond investors battling the fallout of PM Narendra Modi’s expansionary budget. Photo: APIndia’s retail inflation eased from the fastest pace in 17 months, offering some respite to policy makers and bond investors battling the fallout of Prime Minister Narendra Modi’s expansionary budget. The consumer price index (CPI), a measure of retail inflation, rose 5.07% in January from a year earlier, the central statistics office said in a statement in New Delhi on Monday, in line with the 5.1% Bloomberg consensus. “We do think that moderate risks are emerging on account of the wider-than-targeted fiscal deficits,” they wrote in a note before the inflation data. “The risks are also tilting towards an earlier-than-expected rate hike.” Bloomberg

Source: Mint February 12, 2018 15:22 UTC