Highlights:
- The CPI inflation inched up to a 14-month high of 6.2% in October. Core inflation also saw a minor uptick of 20 bps to 3.7% in October.
- Food inflation remains a concern, rising to a 15-month high of 9.7% in October. Inflation continues to remain high in vegetables, edible oil, fruits, pulses and cereals.
- The arrival of the fresh harvest is expected to ease inflationary pressures on food prices. The outlook for rabi sowing looks promising.
- With high headline inflation, the MPC will remain cautious and is likely to maintain status quo on policy rates in the December meeting.
- For the full year FY25, we expect CPI inflation to average 4.8%.
