India: CPI to rise by 3.42% – TD Securities

Analysts at TD Securities are expecting India’s CPI to rise by 3.42% y/y (mkt 3.34%) in August.

Key Quotes

“August is a poor month seasonally, with CPI pressures historically outsized this month. Food prices have been rising at a 1% + rate in each of the last three months and will likely remain elevated in August while the sharp fall in fuel costs in July are unlikely to be repeated in August. An outcome in line with our expectations is unlikely to be unduly worrying for the RBI and will not stand in the way of further easing especially given growing economic pressures.”