Are the markets ignoring the possibility of higher inflation?

Globally, too, sticky inflation seems to be a cause for concern. Last week, two Federal Reserve (US Fed) officials suggested that the US central bank may need to keep interest rates elevated ahead

Puneet Wadhwa New Delhi
Illustration: Binay Sinha
Web Exclusive Premium

Illustration: Binay Sinha

Elevated food price-led inflation could become a sore point for markets going ahead, which they seem to be ignoring at the current levels, said analysts. Retail inflation in India – as measured by the consumer price index (CPI) – came in at a three-month high of 6.52 per cent in January 2023 as compared to 5.72 per cent in December and 5.88 per cent in November 2022.
The inflation print for February, according to Madan Sabnavis, chief economist at Bank of Baroda, will be critical for the Reserve Bank of India's (RBI's) monetary policy committee (MPC) because if it remains above 6 per cent, there could be room for debate on a further rate hike.

Also Read

India's core sector output growth slips to nine-month low in August

Growth of core sector output recovers to 3-month high in September

RBI hikes repo rate by 35 bps to 6.25%, cuts FY23 GDP forecast to 6.8%

RBI MPC: Here is what experts have to say about the policy announcement

Core sector rebounds sharply to grow at 5.4% in November: Govt data

Lumax Auto soars 12% as it acquires majority stake in IAC Group's India biz

Stock bearing the brunt of Adani Group rout is at risk of more losses

Charts indicate robust bias for RIL, ONGC amid GST inclusion hopes

Sonata Software surges 26% in one month; stock nears record high

NMDC's demerged Chhattisgarh unit hits 5% upper circuit on market debut

First Published: Feb 20 2023 | 3:01 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to