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Four-Month Low CPI Inflation Of 5.3% In August To Allay Concerns For October MPC Review: ICRA

Four-Month Low CPI Inflation Of 5.3% In August To Allay Concerns For October MPC Review: ICRA

A customer hands over an Indian ten rupee banknote to a vendor at the Laxmanrao Yadav vegetable market in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)  
A customer hands over an Indian ten rupee banknote to a vendor at the Laxmanrao Yadav vegetable market in Mumbai, India (Photographer: Dhiraj Singh/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.

ICRA Research Report

The headline Consumer Price Index inflation declined to a four-month low 5.3% on YoY basis in August 2021 (our expectation: up 5.9%) from 5.6% in July 2021, well below the upper tolerance level of the Monetary Policy Committee’s 2-6% medium term target.

The decline in the YoY CPI inflation in August 2021 relative to July 2021 was primarily driven by a softening in the inflation for food and beverages, as well as pan, tobacco and intoxicants and miscellaneous items.

The latter contributed to a moderation in the core-CPI inflation to 5.5% in August 2021 from 5.7% in July 2021.

Click on the attachment to read the full report:

ICRA Report CPI August 2021.pdf

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