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Notably, the patron value index (CPI) inflation print has remained at elevated stage on account of higher-than-expected vegetable costs in February.
Furthermore, inflation is anticipated to stay at elevated ranges on account of greater crude oil value in subsequent months owing to the Russia-Ukraine disaster.
“Nonetheless, we nonetheless anticipate the RBI to prioritise progress in its April 2022 financial coverage meet as we consider progress remains to be an even bigger concern at present quite than inflation,” mentioned Motilal Oswal Monetary Providers.
“We anticipate inflation within the vary of 5.2-5.4 per cent YoY in FY22.”
Earlier this month, CPI inflation got here in at an eight-month excessive of 6.1 per cent YoY in February 2022.
In addition to, meals inflation got here in at a 15-month excessive of 5.8 per cent YoY in February 2022 versus 5.4 per cent YoY a month in the past.
“Inside meals, greens primarily precipitated the spike in inflation as excluding greens, CPI got here in at 6.1 per cent YoY much like the extent seen in January 2022.”
“Different objects similar to cereals and merchandise, meat and fish, spices, and sugar and confectionary that represent 17 per cent weight in CPI index additionally contributed to greater inflation.”
Quite the opposite, gasoline and energy inflation got here in at a 10-month low of 8.7 per cent YoY in February 2022.
Moreover, core inflation stood at 6.2 per cent YoY for the fifth consecutive month in February 2022.
“All three parts of core inflation remained broadly flat with no main motion.”
“Barely greater inflation in housing, and clothes and footwear was offset by marginally low inflation in miscellaneous objects.”
