India: Headline CPI to move higher in Feb to 2.42% - TDS

Analysts at TD Securities are expecting India’s headline CPI to move higher in Feb to 2.42% after CPI fell to a 19 month low of 2.05% y/y in January, near the bottom end of the RBI’s 2-6% inflation target.

Key Quotes

“Core inflation is likely to edge lower, however. Fuel and food prices have been the main dampening forces on inflation over recent months.”

“Food prices have dropped for 5 consecutive months but we expect the pace of decline to slow in Feb. Similarly fuel prices are likely to exert less of a negative influence.”