August Retail Inflation On A Softening Trend: Anand Rathi
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.
Anand Rathi Report
Retail inflation in August 2021 at 5.3% was less than consensus expectation.
The fall in retail inflation was driven almost exclusively by food inflation, which softened to 3.1% from 4% last month, while core inflation was unchanged.
Despite high (30% plus) and rising edible oil inflation and high egg and beverage inflation, deflation in cereals and vegetables kept food inflation low.
With good kharif sowing (despite a rain deficit) and modest minimum support price hikes in the last three seasons, the outlook for food inflation is benign.
Core inflation has been hovering ~6% for the last 12 months. This is largely due to the transport category, which technically should not be part of core inflation.
Click on the attachment to read the full report:
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.