India: CPI likely hit a near six-year high in January
Fundamental Forex Analysis

India: CPI likely hit a near six-year high in January

According to a small majority of economists polled by Reuters, India’s retail inflation is likely to reach a near six-year high in January amid higher food prices.

Key Quotes

“The Feb. 5-7 poll consensus of more than 40 economists showed India’s annual consumer price inflation is expected to have risen to 7.40% in January, a touch above December’s 7.35% and the highest since May 2014.

While nearly half of the economists polled predicted price pressures eased in January, none expected it to have fallen within the RBI’s medium-term target range of 2%-6%, suggesting a significant decline in inflation over the coming months was unlikely.”

Rupee bounces

On Monday, the Indian rupee opened with a bullish gap and went on to hit a fresh daily low vs. the US dollar at 71.27. The strength in the rupee is mainly driven by the gains in other Asian currencies and state-run banks’ dollar sales.

 

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