MOSL: ECOSCOPE-Retail inflation at a 17-month high in December 2017-November IIP surprises on the upside
ECOSCOPE: Retail inflation at a 17-month high in December 2017; November IIP surprises on the upside
- CPI inflation rose to a 17-month high of 5.2% in December 2017, higher than our/market expectation of 4.9%/5.1%.
- Vegetable inflation shot up to a four-year high of 29.1%, while core CPI rose to a 40-month high of 5.1% on account of a rise in housing inflation. Inflation in ‘core services’ remained benign at 3.5%.
- IIP surprised on the upside, rising by a sharp 8.4% in November 2017, much higher than our/market expectation of an increase of 2.1%/~4.4%, led by consumer non-durables, capital goods and construction/infra goods.
- We expect inflation to inch above 6% in 1QFY19 and peak at ~7% in June 2018 on account of an adverse base effect. However, a high base is likely to pull down CPI inflation to sub-4% in 2HFY19. Thus, we expect the RBI to look through such statistical effects and maintain status quo through 2018.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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