InvestorQ : Is the inflation expected to go up once again in the month of May 2021?
Chandralekha Desai made post

Is the inflation expected to go up once again in the month of May 2021?

Answer
image
NISHA Nayak answered.
2 months ago
Follow

If you go by the latest consensus estimates of Reuters, it does look like we could see a spike in CPI inflation to 5.30% for May 2021. However, this would still be within the RBI median range of 4-6%. The spike in inflation is expected to be triggered by food and crude prices. It may be recollected that CPI inflation had dipped to level of 4.29% in Apr-21.

In April 2021, there was also a sharp fall in core inflation, and it remains to be seen if that can be sustained or it gets back to 6% levels. In the last 1 month there have been more than 10 hikes by the Oil Marketing Companies or OMCs in petrol and diesel prices. That is surely expected to spur fuel inflation and also impact headline inflation indirectly.

0 Views