New Delhi: The Consumer Price Index (CPI) in India is expected to ease to 5.5 per cent in November 2024 due to a decline in food prices, a Morgan Stanley report stated.
“We expect CPI inflation to edge downwards to 5.5 per cent in November from 6.2 per cent in October, aided by a moderation in food prices, even as core ticks up and fuel continues to decline. On a sequential basis, we anticipate the index to decline on the back of contracting food prices and a deceleration in core CPI,” the global financing firm said in its report.
The report comes as a sigh of relief as the rising food prices have been the major reason behind the inflated inflation. It may be noted that the outgoing Reserve Bank Governor Shaktikanta Das on Tuesday said that restoring inflation-growth balance is the most important task ahead of the central bank.
RBI’s projection of inflation
While announcing the RBI MPC meeting outcome on December 76, 2024, the RBI increased the inflation projection for 2024-25 to 4.8 per cent from 4.5 per cent. Das said lingering food price pressures are likely to keep headline inflation elevated in the December quarter.
“In the near term, despite some softening, lingering food price pressures are likely to keep headline inflation elevated in Q3,” Shaktikanta Das said while giving the details of the decisions finalised in the December 2024 monetary policy.
The year-on-year inflation rate based on All India Consumer Price Index(CPI) for the month of October 2024 stood at 6.21 per cent. Corresponding inflation rates for rural and urban were 6.68 per cent and 5.62 per cent, respectively.
The year-on-year Housing inflation rate for the month of October 2024 was recorded at 2.81%. Corresponding inflation rate for the month of September 2024 was at 2.72%. The housing index is compiled for urban sector only.
Morgan Stanley forecasts India’s Consumer Price Index (CPI) inflation to decline to 5.5% in November 2024, down from October’s 6.2%, primarily due to decreasing food prices. This prediction offers relief amidst rising inflation concerns. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
