India: CPI inflation in the heights – Standard Chartered

India will release important economic data next week with CPI inflation in the front head. Analysts at Standard Chartered Bank expect the CPI inflation to remain high. USD/INR trades modestly negative around 71.23.

Key quotes

“India will release December industrial production (IIP) data on 12 February. We estimate IIP growth at 1.9% versus 1.8% in November.” 

“India will release January CPI inflation data on 12 February; we forecast 7.30%, versus 7.35% in December.” 

“We expect another 40bps of rate cuts in FY21 (ending March 2021), with the next cut likely in August as inflation pressures ease with a lag.” 

“India will release January WPI inflation on 14 February; we forecast 2.65% versus 2.59% in December.”