CPI Inflation

Consumer prices rose 6.44% in February, breaching the Reserve Bank of India's target ceiling

Retail inflation: his is lower than 6.52 per cent in January but still above the Reserve Bank of India's upper tolerance limit of 6 per cent

"We expect CPI inflation to average 5.5 per cent (6.7 per cent in F23 estimates) and the current account deficit to track at 2.5 per cent of GDP in F24 (2.9 per cent in F23 estimates)"

IMF added that the central banks across Asia need to stay 'alert' as the core inflation is still high, and the re-opening of China's economy may push inflation up due to higher demand

In a recent report the RBI said that the retreat of inflation is expected to be stubborn and beset by supply shocks in the upcoming year

Latest reading has increased uncertainty

Maintain adequate allocation for equities in long-term portfolios for financial security

In December, the CPI-based inflation was 5.72% with core inflation at 6.10%

Core inflation, which excludes volatile food and fuel prices, was still running at 6.10% in December, which makes it difficult for the RBI to look away and to keep the tightening cycle going

One cannot completely rule out the possibility that the pause button would be pressed at the next MPC meet. Future actions, both for policy rate and stance, will depend on evolving data

The RBI's caution on inflation and its relatively hawkish position demonstrate its steadfast commitment to achieving the inflation target of 4%

Inflation remains a concern for the RBI

RBI MPC: Shaktikanta Das said that the repo rate hike of 25 bps is considered appropriate at this juncture but the monetary policy will remain agile to inflation

RBI monetary policy: In December, Das had said that despite consecutive rate hikes, core inflation had continued to remain 'sticky'

The Reserve Bank of Australia (RBA) on Tuesday increased the cash rate target by 25 basis points to 3.35 per cent, delivering a ninth straight hike

The key difference is that one works at the production level, the other at the level of the household; but there are a few other differences as well

In November, CPI, also called retail inflation, was at eleven-month low of 5.88 per cent

China abandoned its strict zero-Covid measures last month, lifting lockdowns, removing quarantine and halting regular testing. As a result, economists expect inflation to continue to accelerate

US stocks ended higher as investors heaved a sigh of relief after Powell refrained in a speech from commenting on rate policy but said the Fed's independence was essential for it to battle inflation

Economists and businesses await to see what will be committee's stance in 2023