Perspective on CPI Data by Ms. Madhavi Arora, Chief Economist, Emkay Global Financial Services
Below the Perspective on CPI Data by Ms. Madhavi Arora, Chief Economist, Emkay Global Financial Services
“Continued spate of inflation undershoot vs RBI’s estimates would ensure FY26 inflation will likely undershoot RBI’s estimates by at least 50bps. Besides, the disinflationary bias may be increased further amid domestic GST rate cuts ahead.
We assert the RBI's focus on 1-year ahead expected inflation appears increasingly misplaced in an evolving world – particularly as the global landscape continues to shift toward a disinflationary bias in Asia.
Ahead, we think downside risks to growth would be increasingly evident with global resets and monetary easing led by Fed, and could open up space for easing in the rest of the year, even though the MPC seems to have raised the bar for further easing”.
Above views are of the author and not of the website kindly read disclaimer
