India’s consumer price inflation likely eased further in April

India’s consumer price inflation for the April month is expected to have eased. According to a DBS Bank research report, the inflation is expected to have stayed below 4 percent for the sixth straight month, slowing to 3.4 percent year-on-year from March’s 3.8 percent. Food prices are expected to have dropped below 2 percent year-on-year on base effects, weaker pulses, while perishables stabilized.

In the meantime, core readings are expected to have remained sticky but below 5 percent. The slowdown in consumer price inflation expected to be at odds with the central bank’s neutral stance.

“Inflation is likely to ease further towards 3.0 percent by June on base effects, pushing the markets to monitor June policy guidance closely”, added DBS Bank.

The Reserve Bank of India is expected to play up the risks to inflation in the second half of 2017, thus justifying an on-hold stance, stated DBS Bank.