CPI Inflation At 14-Month Low In December; IIP Contracts Again In November: Motilal Oswal
Trucks line up at a truck terminal near the Second Hoogly Bridge in the Howrah district of Kolkata. (Photographer: Arko Datto/Bloomberg)

CPI Inflation At 14-Month Low In December; IIP Contracts Again In November: Motilal Oswal

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Motilal Oswal Report

Consumer price index-based retail inflation came in at a 14-month low of 4.6% YoY in December 2020 (versus 6.9% in November 2020 and 7.4% in Dec-2019) on lower food inflation.

The same was exactly in line with our expectation, but lower than market consensus of 5%.

Food inflation came in at a 16-month low of 3.5% YoY in Dec-20 as compared to 9.5% in Nov-20 and 14.1% in Dec-2019.

Separately, the Index of Industrial Production declined 1.9% YoY in Nov-20 from a growth of 3.6% YoY in the preceding month.

The decline is worse than both the market consensus of down 1% and our forecast of a minor contraction of 0.1% YoY.

Click on the attachment to read the full report:

Motilal Oswal ECO-CPI-IIP-2021.pdf

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