CPI increase accelerates retail inflation to a 17-month high
New Delhi: Rise in the Consumer Price Index (CPI) by 5.21 per cent has accelerated the retail inflation in the country to a 17-month high.
A little respite is seen in coming months as a substantial surge in oil prices and other goods I expected, increasing the odds that borrowing costs will get a rise sooner than expected.
The Statistics Ministry said in a statement in New Delhi on Friday, that the CPI has increased faster than the 5.10 per cent Bloomberg consensus.
It is also been speculated that government will miss its deficit target for the year through March 2018 when it unveils its budget February 1.
The economists, however, have predicted no change in rates of RBI. "We are expecting the Reserve Bank of India to retain its hawkish stance in the next few months, though we don’t see a rate hike anytime soon," said Anjali Verma, Mumbai-based economist at PhillipCapital.