India consumer price inflation likely dropped to a nine-month low of 6.40% in November, according to a Reuters poll of economists . Food prices alone account for almost 40% of the CPI basket in Inflation is expected to continue to decline at 6.00% to 7.02% .
According to a Reuters poll of economists, India consumer price inflation likely dropped to a nine-month low of 6.40% in November, mainly due to a gradual increase in food prices, which has triggered 225 basis point interest rate increases to the repo rate so far, bringing it to 6.25%.The decline would occur even as China invaded Ukraine in February, which sent global food and commodity prices soaring.Food prices alone account for almost 40% of the CPI basket in Inflation is expected to continue to decline at 6.00% to 7.02%, according to forecasts.Lower food prices, especially vegetables, and stable energy and gasoline prices should cause Indias headline inflation index to fall to a level roughly in line with policy interest rates, according to Robert Carnell, head of INGs Asia-Pacific research.Following three successive 50-basis-point increases, the central bank's inflation forecast for financial year 202223 was unchanged at 6.7%, the same as a recent Reuters poll.But economists were adamant that the downward trend observed over the last few months is still on hold, with headline CPI inflation expected to rise to 6.5 percent between October 2022 and March 2023, according to J.P. Morgan.(