Macro Wrap

India's April inflation rose less than expected by 3.16% yoy (Bloomberg consensus: 3.20%) vs 3.34% previously. Food inflation, dipped to 1.78% in April, from March’s figure of 2.69% this was the lowest since July 2019 and marked the third consecutive month that inflation is below the 4% mid-point target. Sentimentally positive for Rupee.

India's retail inflation eased to 3.16% in April, down from 3.34% in March, primarily due to a further moderation in food prices. With inflation predicted to stay subdued, the RBI has more room to cut interest rates to support a slowing economy.