CPI Review - Headline Inflation Slows As Food Prices Ease; Core Inflation Remains Sticky: Systematix

CPI Review - Headline Inflation Slows As Food Prices Ease; Core Inflation Remains Sticky: Systematix

Soybeans and other dry goods are sold at a stall in a wholesale grains market. (Photographer: Qilai Shen/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

The easing of headline inflation to 4.3% in September 2021 was supported by softening of food prices and a strong base effect.

Core inflation remained sticky at 6%, under which prices of household goods continued to rise.

Rural headline inflation was lower than urban. However, under the core categories, rural inflation exceeded urban by 103 basis points.

As a result of elevated inflation, the real rates in the economy remain negative.

The real repo rate stood at down 2% and the short term money market rate stood at down 2.6% in Sep-21.

Barring food prices, the risks to overall inflation remain on the upside in FY22 and would likely emanate from-

  1. hardening commodity prices,

  2. persisting supply chain disruptions and

  3. pass-through of input costs on consumer prices upon demand revival.

Click on the attachment to read the full report:

Systematix CPI Review - India Economy.pdf
Read Document

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

lock-gif
To continue reading this story
Subscribe to unlock & enjoy all Members-only benefits
Still Not convinced ?  Know More
Get live Stock market updates, Business news, Today’s latest news, Trending stories, and Videos on NDTV Profit.
GET REGULAR UPDATES