Data Preview - CPI Inflation Likely To Print 5.2% In May; WPI To Touch Series-High Of 14.6%: ICICI Securities

Laborers transport sacks of produce in the vegetable and cotton wholesale market in Nagpur, India (Photographer: Dhiraj Singh/Bloomberg)

Data Preview - CPI Inflation Likely To Print 5.2% In May; WPI To Touch Series-High Of 14.6%: ICICI Securities

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ICICI Securities Report

We expect headline inflation to print 5.2% in May 2021, up from 4.3% in April 2021 but down from 6.3% in May 2020.

With this print, average inflation in the first two months of FY22 is likely to stand at 4.7%.

In year-on-year terms, we expect almost all components of consumer price index to record lower inflation.

The unabated rise in wholesale inflation in the recent past is likely to continue in May 2021.

We expect wholesale price index inflation to increase to series-high of 14.6% in May 2021, up from 10.5% in April 2021 and down 3.4% in May 2020.

Index of industrial production is likely to grow 186% in April 2021, mainly due to low base effect.

Click on the attachment to read the full report:

ICICI Securities Monthly Macro Previews June 21.pdf

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