September CPI inflation at 7.41 per cent: How analysts interpret the number

Analysts at UBS expect headline CPI inflation to average 6.7 per cent YoY in FY23 and see RBI's policy outlook to be data dependent contingent on the Fed action

The consumer price inflation (CPI) print of 7.41 per cent in September came in much higher than the Reserve Bank of India’s (RBI’s) comfort level of 6 per cent, mainly led by food inflation that skyrocketed to a 22-month high of 8.6 per cent in the month gone by. READ MORE

Here’s how leading brokerages and economists have interpreted the numbers.

UBS

The unseasonal rains during early October may adversely affect the summer crop yields, thereby posing upside risks to food inflation in the near-term. We continue to expect headline CPI inflation to average 6.7 per cent YoY in