India's CPI inflation continued to remain elevated above the 6.0% handle in Feb-22.
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Mar 14, 2022
Feb-22 CPI: Mounting discomfort
India’s CPI inflation continued to remain elevated above the 6.0% handle in Feb-22 belying expectations of a marginal deceleration as it came in at 6.07% (vs. 6.01% in Jan-22 and Reuters consensus for Feb-22 at 5.94%). This marks the second consecutive month of inflation remaining above upper end of RBI’s inflation targeting band, and a reprieve is unlikely in Mar-22, given a host of pressures in the pipeline. Assuming oil price to average at USD 100 pb levels, FY23 CPI inflation could move up to 6.1-6.3% via a combination of first and second round effects.