CPI inflation for Feb-23 came in at 6.44%YoY in line with market participants expecting a mild softening after the surprise jump in Jan-23 to 6.52%
Download ReportQuantEco Research || Feb-23 CPI Inflation - Beating Hard
CPI inflation for Feb-23 came in at 6.44%YoY in line with market participants expecting a mild softening after the surprise jump in Jan-23 to 6.52% (Reuters consensus: 6.4%, QuantEco estimate: 6.62%). The in-line outcome notwithstanding, the recent inflation print remains uncomfortably high - above RBI’s upper threshold of inflation target band of 6.0% for the second consecutive month. For Q4 FY23, CPI inflation could average around 6.2% i.e., 50 bps above RBI’s estimate of 5.7% for the quarter. Outlook on inflation remains riddled with risks on the upside. We continue to expect RBI to hike the repo rate by another 25 bps in Apr-22 while keeping its stance unchanged