Consumer inflation for September was 7.34 percent, compared to a forecast of 6.9 percent based on a CNBC-TV18 poll. Factory output for August, as a measure of Index of Industrial Production (IIP) came in at -8 percent against a CNBC-TV18 poll average of -6.4 percent.

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Indranil Pan, Chief Economist of IDFC First Bank, DK Joshi Chief Economist at CRISIL, Jayesh Mehta Managing Director and Country Treasurer of Bank of America and Sameer Narang, Chief Economist at Bank of Baroda (BoB) discussed the implications of these readings.

“It is a shocker, but I am not sure whether it will have any implications in terms of either the Reserve Bank of India (RBI) policy going forward or even in terms of the interest rate dynamics in the months ahead,” said Pan.

Narang said the average consumer inflation for this fiscal was likely to be over 5 percent and next year, it was expected to remain upwards of 4 percent.

Joshi noted that risks to any inflation forecast was on the upside.

First Published:Oct 12, 2020 6:44 PM IST