India’s Inflation Goal Remains a Challenge, Kotak Economist Says
- Government may absorb burden of rising crude oil prices
- High pressure on rupee leading RBI to hike rates indirectly
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India’s inflation will continue to moderate but achieving the 4% goal will be challenging for the central bank amid weak monsoons and higher crude oil prices.
That’s the view of Upasna Bhardwaj, an economist at Kotak Mahindra Bank, who expects headline inflation figures for September — due to be released this week — to ease to 5.3% from 6.83% in August. Price gains will soften for the next few readings, though sustainably driving inflation to the midpoint of Reserve Bank of India’s 2%-6% target aim will be tough, she said in an interview with Bloomberg Television’s David Ingles and Rishaad Salamat Monday.