Headline CPI inflation in India is likely to have dropped in May, primarily due to base effects. But beyond May, we expect inflation to resume rising, reaching over 8% by August. The RBI is likely to respond by frontloading policy tightening in the coming months, including a 50bp hike in the repo rate tomorrow.
India Drop-In (8th June, 10:00 ET/15:00 BST): We’ll be discussing India’s growth, inflation and policy outlook in the wake of the RBI’s June meeting, including what to do about the rupee. Register now.
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