Gains in global equities after successful coronavirus vaccine rollouts raised hopes of a rapid economic recovery. The surge in local equity markets was also after better than expected earnings and macro economic data
January CPI inflation comes in at 4.06%; second consecutive month of headline figure within MPC range
This was on the back of further cooling down of food prices. Consumer Food Price Inflation (CFPI) was 1.89 per cent in January, data by the National Statistical Office showed. February 12, 2021 / 06:12 PM IST
Consumer Price Index-based inflation (CPI) for the month of January came in at 4.06 per cent, the second consecutive month of retail inflation falling within the Monetary Policy Committee’s medium-term inflation target range of 4 (+/-2 per cent), official data showed on February 12.
This was on the back of further cooling down of food prices. Consumer Food Price Inflation (CFPI) was 1.89 per cent in January, data by the National Statistical Office (NSO) showed.
The Reserve Bank of India (RBI) is unlikely to further ease the interest rates in the next meeting of its Monetary Policy Committee even though retail inflation declined in December 2020, a report by Motilal Oswal Institutional Equities said. The Ecoscope report noted that the central bank is likely to continue with its calibrated approach towards the management of domestic liquidity. It is for the first time since the COVID-19 pandemic began that the CPI inflation has come within the RBI s target inflation range of 2-6%. What remains to be seen is if the downward trajectory in food prices continues during CY21. In any case, we do not expect any further monetary easing and the RBI is likely to continue to manage domestic liquidity in a calibrated manner, it said.