CY2021 has begun on a normalizing note. CPI inflation that averaged....
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Feb 12, 2021
India Jan 21 CPI - Cruising below 5%
CY2021 has begun on a normalizing note. CPI inflation that averaged at 6.8% between Apr-Nov FY21, corrected sharply in Dec-20 (14-month low of 4.59%) and has printed yet another number below 5.0% in Jan-21. At 4.06%, while the strength of the downdraft in Jan-21 CPI inflation has caught us and markets by surprise (QuantEco forecast: 4.79%, Bloomberg consensus: 4.4%), it is nevertheless heartening to see inflation revert to RBI’s midpoint of inflation target range of 4% +/-2%.