India: Inflation marks a correction – ANZ

Today’s inflation number marks a correction from the previous month’s peak. Nonetheless, it is also unlikely to be of much relevance for monetary policy which predominantly needs to address slowing economic activity and arrest the fall in equity markets, in the opinion of analysts at ANZ Research. USD/INR trades at 74.4450.

Key quotes

“Sequentially, headline CPI fell 0.73% m/m in February, from a decline of 0.13% in January.”

“Core inflation also eased after three months of picking up, as the effect from telecom price hikes eased.”

“Prices are expected to trend lower in the coming months owing to a slump in crude oil prices and weaker growth.”