India: Headline CPI rose further in April to 2.92% - ANZ

ANZ analysts note that India’s headline CPI rose further in April to 2.92% y/y from 2.86% y/y in March on higher food and fuel prices.

Key Quotes

“Nonetheless, demand-pull inflationary pressures remained benign, with core CPI moderating for the sixth straight month.”

“We expect headline inflation to inch up incrementally in the coming months, but remain below the Reserve Bank of India’s (RBI) medium-term target of 4%. Although softer price pressures reaffirm the case for one more rate cut in the current easing cycle, we expect it to come only in August.”