"Base effects are significantly favourable in April, putting more than 150 basis points downward pressure on headline year-on-year inflation. Beyond this, onion prices have also fallen further," noted Samiran Chakraborty, chief economist for India at Citi. "On the other hand, prices of food excluding vegetables continue to exert upward pressure on inflation. "India will probably receive an average amount of rain in the 2021 monsoon, the India Meteorological Department said last month. We also expect the RBI to continue with its liquidity support measures for the vulnerable sectors."

Source: Economic Times May 11, 2021 06:29 UTC