Consumer Price Inflation for May 2015 rose to 5%, rising suddenly after two months of a drop. Components showed rising inflation in: Fuel (we saw two retail fuel price increases in May, and guessed this last month) Education, Medical costs Consumption: Personal Care and Household Items Food remains benign on the inflation front and here the only fear is of a bad monsoon. There has been an uptick in Rural and Urban inflation. “Core Inflation” has risen after a long time If you take out the impact of food and fuel, the inflation index has risen suddenly: Our View While inflation has gone up, we don’t think this is a big deal just yet because the next few months have seen a sudden move up last year on the index. However the rise in “core” inflation is surprising. In any case, RBI isn’t going to drop rates for a few months at least.… (Read On…)
[via Capital MindCapital Mind]
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