The drop in inflation to 6.6% y/y in January results primarily from base effects and falling food prices. Nevertheless, there is sufficient evidence that underlying inflationary pressure has eased for the Reserve Bank of India (RBI) to cut the repo rate in the coming month or two.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services