For Quick Alerts
For Daily Alerts

Inflation Data Due Today Could Breach 6% On Rise In Oil Prices: Survey

By Staff

Last week, amid US-Iran tensions, oil prices briefly rose to $70 in the international markets. Even as prices have eased now, they remain higher when compared to the last year, causing economists to feel that India's already surging inflation could go climb further.

Inflation Data Due Today Could Breach 6% On Rise In Oil Prices: Survey

According to the median estimate of 36 economists surveyed by Bloomberg, price-growth probably accelerated to 6.7 percent in December from 5.5 percent in the previous month.

Data on Consumer Price Index (CPI), a measure of retail inflation in the country, for the month of December, is scheduled to be released on Monday, while Wholesale Price Index (WPI) data will be out on Tuesday.

CPI is expected to breach the upper end of the Reserve Bank of India's 2-6 percent target band for the first time since July 2016.

In December, when RBI kept its key interest rate unchanged after its monetary policy review, it cited "much higher than expected" inflation for its decision.

When costs of vegetables to mobile phone services have been climbing, RBI will not be able to stick to its easing lending cycle to push growth.

Last week, Governor Shaktikanta Das said that price stability is the central bank's primary objective as continuing high inflation disproportionately affects the poor.

RBI's next monetary policy review is scheduled for 6 February, a few days after Finance Minister Nirmala Sitharaman presents the Union Budget in the parliament for the financial year 2020-21.

Read more about: inflation cpi wpi
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more