ICICI Securities: August CPI Eases Moderately To 6.69%; WPI Turns Positive

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Consumer price index eases moderately in sequential terms, still uncomfortably high - Headline retail inflation eased moderately to 6.69% in August 2020 from 6.73% in July 2020 although sharply higher than 3.28% twelve months ago.With this print, average retail inflation in Q2 FY21 and H1 FY21 so far stands at 6.7% and 6.6% respectively.Daily food price data shows that food prices have remained elevated in the first two weeks of September 2020 as well.Hence, we expect CPI in September 2020 to remain above 6%, taking inflation in Q2 and H1 FY21 above the upper limit of Monetary Policy Committee’s comfort zone.In a separate data release, wholesale inflation came in at 0.16% in August 2020 reversing preceding four months’ trend of negative prints.However, in YoY terms WPI fell from 1.17% in August 2019.Higher inflation in manufacturing (1.3% in August 2020 versus 0.5% in July 2020) and primary articles (1.6% versus 0.6%) drove WPI higher while fuel inflation continued to be in the red..Click on the attachment to read the full report:.DISCLAIMERThis 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 brokerage 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.

ICICI Securities: August CPI Eases Moderately To 6.69%; WPI Turns Positive

With this print, average retail inflation in Q2FY21 and H1FY21 so far stands at 6.7% and 6.6% respectively, ICICI Securities says.

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