New Delhi, Dec 16 || Well stocked granaries, low oil prices and longer-lasting drivers of core disinflation are likely to keep India inflation benign in FY27 as well, according to a new report.
HSBC Global Investment Research said in its report that “we do not forecast more RBI repo rate cuts, but the risks, if any, are of more easing, if growth disappoints”.
November CPI inflation came in at 0.7 per cent (on-year), in line with market expectation. Despite a sequential uptick of 0.4 per cent (on-month), the annual prints remained depressed due to base effect.
Excluding gold, headline CPI remained in deflation (-0.1 per cent in November compared to -0.6 per cent previously).
“Deflation in food prices continued for a third month in annual terms. Sequentially, food prices rose 0.5 per cent on-month after two months of contraction. Vegetables prices picked up after falling for two straight months along with a rise in the prices of protein items like egg, meat and fish,” said the report.