Breaking News

You are here » Indian-Commodity  :  Economy  :  CPI inflation for December expected to remain at an elevated level: SBI report

12-Jan2018

CPI inflation for December expected to remain at an elevated level: SBI report

State Bank of India's (SBI) Ecowrap report has said that the country's consumer price index (CPI)-based inflation for December is expected to remain at an elevated level and range between 5 and 5.2 per cent. SBI in its report pointed that CPI inflation came in at 4.88 per cent in November 2017, surpassing the already high expectations of the market and for December 2017 as well the numbers are expected to remain elevated. It further projected CPI inflation to come in between 5-5.2 per cent.

However, the report also pointed that the higher rate of inflation is “primarily due to base effect” and said that “The average for Q3 FY18 will come around 4.5 per cent on yearly basis compared to 3 per cent  in Q2 FY18, adding that “we expect the Q4 FY18 average at 4.8 per cent”. “Inflation for the Jan'18-Jun'18 period is likely to be on the higher side owing primarily to base effect (average inflation for Jan'17-Jun'17: 2.89 per cent).

The report added that some inflation numbers in the first half of 2018 could print over 5.5 per cent and this could be a source of negative surprise and it expects that on a net basis CPI inflation will remain modest in FY19 at 4.5 per cent. It had previously observed that inflation in Southern states is higher than other parts of the country mainly due to higher rural inflation over urban inflation.


Related News

View all news

India's CAD widens to 2.9% of GDP in Q2FY19 on higher trade deficit

Raising concerns over India's fiscal position, the Reserve Bank of India (RBI) in its preliminary balance of payments (BoP) data has showed that the country's current account deficit (CAD) widened to 2.9%......

Finance Ministry extends last date for filing annual GST returns till March 31

In a relief measure for trade and industry, the Finance Ministry has extended the last date for filing annual Goods and Services Tax (GST) return forms by three months until March 31, 2019.  The......

India's growth performance 'very solid' over past four years: IMF Chief Economist

Praising the fundamental economic reforms like the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) carried out by the government, International Monetary Fund's (IMF) Chief Economist......

Top News

View all news

Arrow Greentech's arm gets approval to manufacture mouth dissolving strips

Arrow Greentech's wholly owned subsidiary (WOS) company -- Avery Pharmaceuticals, also known as Arrow Rx has received an approval for site plan to manufacture mouth dissolving strips from Food &......

Essel Propack issuing commercial papers worth Rs 50 crore

Essel Propack is issuing Commercial Papers (CPs) for Rs 50 crore on private placement basis and will have date of maturity as March 13, 2019. The CPs for Rs 50 crore with date of maturity as December 13,......

Escorts, Kubota join hands for global leadership

Escorts and Kubota Corporation have joined hands for their global joint venture (JV) to manufacture high end technology tractors for domestic and export geographies. The JV will leverage leading Japanese......