Inflation / CPI / WPI

Rising household inflation expectations are adding to concerns about persistent price pressures in India, as indicated by a recent RBI survey showing a significant jump in perceptions across major cities. This development comes as the Reserve Bank of India maintains a cautious stance on interest rates, citing the need to monitor broader inflationary trends and geopolitical risks, particularly those stemming from the US-Iran conflict. While CPI inflation did ease in April, the acceleration in WPI and declining consumer confidence suggest that inflationary headwinds may persist, potentially impacting consumer spending and economic growth. Investors should closely monitor upcoming inflation data and RBI policy decisions for further clarity on the trajectory of monetary policy.