India: Uptick in February CPI - ANZ

ANZ analysts note that the Indian headline CPI picked up in February to 2.57%y/y from 1.97% (Revised) in January, for the first time in five months, as the decline in food prices was milder than in previous months.

Key Quotes

“Overall inflationary pressures remain soft, with core CPI moderating for the second straight month.”

“We expect headline inflation to remain below 3% until Q3 2019.”

“Not only should this inflation trajectory allow the Reserve Bank of India (RBI) to cut the policy repo rate by another 25bps to 6.00% at its April meeting, it could open the door to deeper cuts further out.”