India: CPI likely to rise to a rate of 3.24% YoY – TD Securities

TD Securities analysts note that India’s CPI inflation rose to an 8-month high in June, but it remains below the mid-point of the RBI’s target band while core CPI continues to ease.

Key Quotes

“Adverse seasonal factors as will an increase in domestic fuel prices due to higher taxes will likely contribute to a further increase in headline CPI this month. We expect CPI to rise to a rate of 3.24% y/y (market 3.08%), with the upside capped by favourable base effects. Meanwhile core CPI could edge even lower, providing further comfort to the RBI.”