Motilal Oswal: CPI Inflation In July Much Higher Than Expected; Broad-Based Higher Headline Inflation A Cause For Concern

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..Motilal Oswal Report.Headline inflation came in at 6.9% YoY in July 2020 (versus 6.2% YoY in June 2020), much higher than our expectation of 5.9% YoY and market consensus of 6.3% YoY, driven largely by higher ‘vegetable’ inflation.Core inflation also remained at an unexpectedly elevated level. Food inflation (excluding non-alcoholic beverages and prepared meals) in July 2020 stood at a three-month high of 9.6% YoY versus 8.7% YoY in June 2020, driven by higher ‘vegetable’ inflation.After declining to 4% YoY in June 2020 from 23.6% YoY in April 2020, ‘vegetable’ inflation came in at 11.3% YoY in July 2020. What was more worrying is Consumer Price Index (CPI) excluding vegetables reached a 71-month high of 6.6% YoY in July 2020 versus 6.4% YoY in June 2020.Alarmingly, core inflation (inflation in 'housing, 'clothing and footwear', and 'miscellaneous Items' combined) came in at a 19-month high of 5.5% YoY in July 2020, against 5% in June 2020, driven largely by ‘transport and communication’ within ‘miscellaneous’ items.Inflation in ‘housing’ moderated to 3.3% in July 2020 from 3.5% in June 2020; in ‘clothing and footwear’, it rose to 2.9% YoY in July 2020 versus 2.7% in June 2020..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.

Motilal Oswal: CPI Inflation In July Much Higher Than Expected; Broad-Based Higher Headline Inflation A Cause For Concern

Motilal Oswal: CPI Inflation In July Much Higher Than Expected; Broad-Based Higher Headline Inflation A Cause For Concern

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