A Prasanna, Chief Economist at I-Sec PD shared his views and readings on core inflation numbers which came slightly higher than expected, and said that there were upside surprises in both food and non-food component. Core has moved up and even the core momentum has moved up.
“It’s still early to say that this could lead to further rise in core going forward. Of course base effect means that both headline and core will go up in the current quarter,” he added.
According to him, the second half inflation depends on what the government does with minimum support price (MSP) announcement and how it tries to implement.
Talking about bond markets, Prasanna said, “It’s not right to look at the yield curve and try and take some message and members of Monetary Policy Committee (MPC) should also understand that.”