Indian inflation data for the month of January is set to be released tomorrow. According to a DBS Bank research report, the consumer price inflation is likely to have accelerated to 2.4 percent year-on-year in the month from December’s 18-month low of 2.2 percent. Food inflation is expected to have eased for the fourth straight month, though the rate of decline is likely to have narrowed, as the disinflationary trend in pulses and vegetables eased.
Core inflation will be monitored closely, after recent movements have been puzzling. Since October 2018, core rate continues to be elevated, despite lower global commodity prices and moderating domestic growth.
Last week, the Reserve Bank of India reinforced that the headline inflation is its mandate and so far as prints continue to remain below/within targets, the panel will have the space to take a growth supportive stance, added DBS Bank.
Meanwhile, industrial production is expected to have barely held above water in the month of December. It is likely to have risen 0.5 percent year-on-year, stable fro month before.