Consumer Prices (Jan.) & Industrial Production (Dec.)

Unlike the recently revised GDP data, the rebasing of India’s consumer price data appears to have done little to alter the headline numbers. The big picture is that inflation is still comfortably below the RBI’s near-term goals. Meanwhile, though we wouldn’t put too much weight on the drop in industrial production growth in December, it does still point to increasing slack in the economy. Overall, the case for further policy loosening remains intact.