MNI: US Dec Consumer Inflation Expectations Mixed -NY Fed

MNI BRIEF: BOC Releasing Pandemic Actions Review Jan 17

BANK OF CANADA RELEASING PANDEMIC REVIEW REPORT ON JAN 17

MNI China Daily Summary: Monday, January 13

MNI BRIEF: China December Vehicle Sales Up 10.5%

MNI BRIEF: PBOC To Add Forex Reserves Allocation In HK - Pan

EZ/UK T-Bill Calendar: Spain, Belgium Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, Greece Syndications

MNI BRIEF: China 2024 Exports Grow 5.9% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

INDIA: Sell-Side Analysts Expect Easing Room to Open Up Following Dec CPI

INDIA
IndiaEM BulletBulletAPACEmerging Market News
  • ANZ: The usual seasonal drop in food prices during the winter months was delayed, ANZ say, as prices dropped in the last week of Dec. Vegetable prices have eased further in Jan, signalling a dip in headline inflation ahead. They note that food disinflation will likely offset gradually rising imported inflation, although a weaker INR remains an upside inflation risk. ANZ expect a 25bp rate cut at the next MPC meeting.
  • HSBC: Core inflation softened across all definitions, albeit in yearly terms core inflation remains firmly at or below the 4% mark. Looking ahead, HSBC say winter disinflation is getting stronger, and headline inflation could be around 4.5% in Jan. With core inflation range bound and food inflation expected to come off, space for monetary policy easing is likely to open up, particularly as and when FX volatility eases.
  • SocGen: While SocGen do not expect the headline inflation to drop meaningfully below the central bank’s median target of 4.0% over the next few months, the easing trajectory is unmistakable. Add to that a slowing economy, and a monetary policy easing ought to be round the corner.
184 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • ANZ: The usual seasonal drop in food prices during the winter months was delayed, ANZ say, as prices dropped in the last week of Dec. Vegetable prices have eased further in Jan, signalling a dip in headline inflation ahead. They note that food disinflation will likely offset gradually rising imported inflation, although a weaker INR remains an upside inflation risk. ANZ expect a 25bp rate cut at the next MPC meeting.
  • HSBC: Core inflation softened across all definitions, albeit in yearly terms core inflation remains firmly at or below the 4% mark. Looking ahead, HSBC say winter disinflation is getting stronger, and headline inflation could be around 4.5% in Jan. With core inflation range bound and food inflation expected to come off, space for monetary policy easing is likely to open up, particularly as and when FX volatility eases.
  • SocGen: While SocGen do not expect the headline inflation to drop meaningfully below the central bank’s median target of 4.0% over the next few months, the easing trajectory is unmistakable. Add to that a slowing economy, and a monetary policy easing ought to be round the corner.