MUFG Senior Currency Analyst Lloyd Chan highlights that India’s consumer price inflation (CPI), calculated under the new 2024 base year series, has risen to 2.8% year-on-year. This increase was primarily fueled by rising food costs. Chan notes that this reading places inflation comfortably back within the Reserve Bank of India’s (RBI) 2%-6% target corridor, providing the central bank with the flexibility to maintain the status quo on interest rates at its upcoming April policy meeting.
MUFG: Cooling Inflation Justifies RBI’s Rate Pause
