SBI staff expects CPI inflation to come down to 5 per cent by March this year.
CPI inflation in the country rose to a four-month high of 5.69 per cent (slightly lower than SBI expectations of 5.98 per cent) due to increase in food price inflation. Inflation in all the other components increased at a lower rate when compared to November. The pick-up in inflation was driven by an unfavourable base effect of around 10 basis points (bps).
The impact of disruption around Red Sea remains the main risk to inflation in general.
Meanwhile, the index of industrial production (IIP) growth data showed a deceleration to 2.4 per cent year on year (YoY) in November last year from 11.6 per cent in October. The manufacturing sector registered lower growth.
Fibre2Fashion News Desk (DS)