"We forecast CPI inflation rose slightly, to 5.3%, in February, with a modest sequential rise in food and core prices. Price pressures largely remain in check, and food prices are coming off gradually," wrote Rahul Bajoria, chief India economist at Barclays. "This should keep the RBI on the sidelines for longer, with no urgency to cut rates given robust growth. "Given the large weightage of food and fuel on India's consumer price index, this could drive up headline inflation in the coming months. "The poll also estimated core inflation in India, which strips out volatile food and energy prices, was likely at 3.50% in February, according to the median forecast of 26 economists.

Source: Economic Times March 07, 2024 17:17 UTC